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Frequently asked questions - Applying for Adjudication

What is adjudication?

Adjudication is a process carried out by an independent adjudicator to decide the amount, if any, that is due in respect of a progress payment claimed under the Act.

Only a claimant can start the adjudication process.

When can I apply for adjudication?

You may apply for adjudication in the following circumstances:

- you have not received a payment schedule or payment within 10 business days of making a claim (20 business days if the respondent is a residential home owner), and you have, within 20 business days of the payment schedule or payment being due notified the respondent that you intend to apply for adjudication, and have given the respondent 5 business days to provide a payment schedule

OR

- within 10 days of receiving a payment schedule with which you disagree

OR

- if the respondent does not pay the full amount of the payment schedule.

Who selects the adjudicator?

Nominating Authorities (NAs) select adjudicators.

How do I contact an NA?

The Security of Payments Official, has authorised specialist organisations to receive adjudication applications, nominate adjudicators and issue adjudication certificates. These bodies are called Nominating Authorities (NA's).

Who selects the NA for my matter?

The claimant chooses which NA to submit an adjudication application to.

Claimants should be aware that fees amongst different NAs may vary. Also, each NA will have different panels of adjudicators. Prior to selecting an NA, a claimant should inquire about NA fees and the likely fees and expenses of the adjudicator. Claimants are encouraged to discuss with the NA, the nature of the issues involved in their claim and the qualifications that might be required of the adjudicator.

How much does adjudication cost?

There are two components to adjudication cost.

  1. The adjudicator's fees and expenses, and
  2. the Nominating Authorities fees.

Adjudication is intended to be informal, inexpensive and quick. If issues are kept simple and the submissions of the parties are complete, clear and concise, adjudication fees can be kept to a minimum.

The Security of Payments Act requires that the claimant and the respondent share adjudicator's fees equally, unless the adjudicator decides differently.

As a guide, the typical cost of adjudication depends on the amount being claimed.

How are NAs and adjudicators paid?

  • An NA and an Adjudicator are entitled to be paid.
  • Adjudication operates on a 'user-pays' basis.
  • The Claimant and Respondent are 'jointly and severally liable' to meet such fees - each are liable to contribute to the payment in equal portions, or in the portions the Adjudicator decides.

How do I apply for adjudication?

If you think you are entitled to make a claim for adjudication then any of the NA's will be able to assist you by providing an adjudication application form.

Applicants should note that the adjudication application must be in writing and addressed to an NA, requesting the NA to nominate an adjudicator:

  • be lodged with the NA within the time allowed under the Act
  • be served upon the respondent at the same time
  • be accompanied by any NA's application fee
  • attach a copy of the payment claim
  • attach a copy of the payment schedule (if any)
  • include all information in support of the claim that the claimant wishes the adjudicator to consider (such as expert reports, photographs and rebuttal of arguments for withholding payment raised by the respondent in the payment schedule), and
  • include a copy of the written contract (if any).

What happens after I apply for adjudication?

Once you have submitted your adjudication application the NA will contact an adjudicator they consider best suited to determine your claim. If the adjudicator accepts the application, the claimant and respondent will receive a notice from the adjudicator.

If the claimant does not receive a notice of acceptance from an adjudicator within four (4) business days, the claimant is entitled to withdraw the adjudication application. The claimant then has five (5) business days to lodge the application with another NA.

Can an adjudicator refuse to release their decision until paid?

  • The Adjudicator has a 'lien' entitlement to withhold releasing their adjudication decision until their adjudication fees are paid.
  • A Claimant may pay the Respondent's portion of the fees, to have decision released and have this amount added to adjudicated amount when obtaining an Adjudication Certificate.