Adjudication

What is adjudication?

It’s law, and it’s a very rapid process that creates a decision about a payment dispute. Typically about 30-40 days. There’s no getting out of it, except to pay the full amount.

Time frames are short and the steps are many. If you slip up, you’re doomed to pay or not be paid. That’s right. Doomed. The security of payment Acts are unforgiving.

The decision is immediately enforceable. You rarely can appeal it, and only at great cost.

It relates to disputes about payment over construction work and related goods and services.

Do you know if you have a payment dispute the fastest way to resolve it is through adjudication?

Adjudication is a quick low-cost way of resolving a payment dispute, and was first established under the building Construction Industry Payment Act (QLD) 2004 (now repealed by the Building Industry Fairness Act (QLD) 2017 (BIF Act).

The BIF Act has streamlined the processes for adjudication:

Now as a claimant you don’t need to notify another party that you intend to go to adjudication.

Because the BIF Act removed the previous requirement to nominate that a payment claim was made under the Act, If no payment schedule is provided, there is no ability to issue an adjudication response if a matter goes to adjudication.

In that circumstance you can apply for a summary judgement of the decision amount – without argument or any ability to set the decision aside (absent jurisdictional reasons which are rare).

The other side cannot raise any new matters not provided for in a payment schedule either - They are trapped by the reasons they have provided.

There is a maximum PENALTY OF 200 PENALTY UNITS if an adjudicated amount isn’t paid within 5 business days or another time decided by the adjudicator.