Who does this Act apply to?

The Act applies to a construction contract in Queensland entered into on or after the 1^st October 2004. The Act applies to all construction work including the provision of goods and services related to the construction contract.

 The Act does not apply to;

• A construction contract which forms part of a loan agreement, contract of guarantee or a contract of insurance under which a recognised financial institution undertakes to lend money, to guarantee payment or provide indemnity relating to the construction contract.

• A construction contract carried out for a resident owner as defined by the Domestic Contracts Act 2000, who is a party to the contract.

• A construction contract where the consideration payable is calculated in reference to the value of the work carried out or the value of the goods and services supplied.

• Employees of a company

• Provisions where the party has undertaken the work as part of a loan agreement.

Am I able to withhold money until I am paid under another contract?

You are not able to withhold money due to the claimant until you are paid under another contract. This is deemed a "pay when paid" provision and has no effect in relation to any claim for construction work made under the Building and Construction Industry Payments Act.

What must a valid payment claim include?

A "payment claim" is terminology used in the Act to describe what would normally be called a tax invoice, progress claim, final claim etc.

The payment claim must identify the construction work or related goods and services to which the progress payment relates. It must state the amount of the progress payment that the claimant is claiming and must state "This payment claim is made under the Building and Construction Industry Payments Act".

What should I include in my payment schedule?

When the respondent receives the payment claim from the claimant they should serve a payment schedule on the claimant within 10 business days of receiving the payment claim. The payment schedule must identify the payment claim to which it relates and must state the amount of the payment, if any, that the respondent proposes to make.

If the scheduled amount is less than the claimed amount, the respondent must state reasons why the scheduled amount is less than the claimed amount.

What should I do, if I do not agree with the payment claim?

If you do not agree with the payment claim then you must provide a payment schedule within 10 business days of receiving the payment claim.  The payment schedule must identify the payment claim to which it relates and must indicate the amount of the payment that the respondent proposes to make. If the scheduled amount is less than the claimed amount, you must identify the reasons why the scheduled amount is less. It is important to include all of the reasons as they cannot be introduced later in the adjudication response.

What happens if I do not serve a payment schedule?

If you do not provide a payment schedule then you will loose the opportunity to provide an adjudication response. It is important that if you have valid reasons for withholding payment that you provide a payment schedule as this is your opportunity to have your say in the process.

What should I do, if I am served with an Adjudication Application?

If you are served with an Adjudication Application you will be required to prepare an Adjudication Response. It is suggested that you contact the ANA or seek independent advice should you be served with an Adjudication Application. Please remember an adjudication response must be served within 5 business days after receiving a copy of the application OR 2 business days after receiving notice of an adjudicator's acceptance of the application, whichever time expires later.

What should I include in my Adjudication Response?

The adjudication response must be in writing and must identify the adjudication application to which it relates. The respondent may provide the adjudicator with an adjudication response only if the respondent has served a payment schedule on the claimant within 10 business days of receiving the payment claim or 5 business days of receiving the section 21 Notice.

How long will it take for the Adjudicator to make a decision?

The Adjudicator must make a decision within 10 business days after the Adjudication response is due or should be due.

If I am found liable, how long do I have to pay the Adjudicated Amount?

The respondent is required to pay the adjudicated amount 5 business days after the date on which the adjudicator's decision is served on the respondent or at a later date, which the adjudicator decides.

Who pays the Adjudication fees and expenses?

It is the policy at Australian Solutions Centre that no adjudication decision will be released until the adjudicator's fees are paid. ASC will send a letter to both parties notifying each party of the fees. Once the fees are paid by one or both parties, the decision will be released to both parties. The adjudicator will state who is liable for the adjudicator's fees in the decision. Accordingly, if the claimant has paid the fees for the purposes of release but the decision states that the claimant and respondent are equally liable for the adjudicator's fees, the respondent will be required to pay the claimant their share of the fees within 5 business days of being served with the decision or at a later date decided by the adjudicator.

Is the claimant able to suspend work?

The claimant may suspend work under the construction contract if at least 2 business days have passed since the claimant has provided notice of intention to do so to be given to the respondent under section 15,16 or 24.

If assistance or further information is required please contact us on 1300 722 624