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/Factsheet_print/Tradespeople/Building_industry_essentials/Security_of_payment/_Respond_to_adjudication_applications.pdf
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Standard fact sheet.

Respond to adjudication applications 

Can a respondent lodge a response to an adjudication application? 

The respondent can only respond to an adjudication application if they have provided a payment schedule to the claimant within:

  • 10 business days after being served the payment claim; or
  • 5 business days after being served a notice from the claimant of their intention to apply for adjudication (as a result of the claimant not being provided with an initial payment schedule and not being paid by the due date of payment).

The adjudicator can't consider a response received after the later of:

  • 5 business days after the respondent received a copy of the adjudication application; or
  • 2 business days after the respondent received notice of the adjudicator's acceptance of the application.

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How should a response to an adjudication application be made? 

The response:

  • must be in writing
  • must be addressed to the adjudicator and be received by the adjudicator within the set timeframe
  • must be served on the claimant at the same time
  • must not include any reasons for withholding payment unless those reasons were included in the payment schedule
  • should include full details of reasons given in the payment schedule for refusing to pay or withholding payment of any amount
  • may contain submissions relevant to the response
  • may respond to issues raised in the adjudication application.

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How long does an adjudicator have to make a determination? 

The adjudicator has 10 business days to make a determination after notifying the claimant and respondent that an application has been accepted. However, a longer time may be given if agreed to by both parties.

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How does the adjudicator determine an application? 

In determining an application, an adjudicator must consider the following matters only:

  • the Building and Construction Industry Security of Payment Act 1999
  • the contract (verbal or written)
  • the payment claim
  • the payment schedule (if any)
  • the adjudication application
  • the adjudication response (if any)
  • the results of any inspection.

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What does an adjudicator determine? 

The adjudicator determines:

  • the amount of any progress payment that the respondent must pay the claimant
  • the date on which the amount is or was payable
  • the rate of interest payable on the amount
  • how adjudication fees are split between each party.

If in a previous adjudication the adjudicator or another adjudicator has determined the value of the work, goods or services, the adjudicator must give that work, goods or services the same value, unless the claimant or respondent satisfies the adjudicator that the value has changed since the previous adjudication.

The determination must be in writing, unless both parties request otherwise. It must include the reason for the determination.

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What happens after the adjudicator determines the application? 

The respondent must pay the claimant any amount due by the date in the adjudicator's determination. If the respondent refuses to comply, the claimant will need to take steps to enforce payment.

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