A statutory payment pathway
The Building and Construction Industry Security of Payment Act 1999 (NSW) creates a process for progress payments for construction work and related goods and services. It can apply even where the construction contract is not in writing.
The statutory process operates alongside the construction contract. The contract, the payment claim, the service date, the payment schedule and the project record all need to be considered together.
Strict and short timeframes
Security of payment matters move quickly. Different deadlines apply to payment claims, payment schedules, notices of intention, adjudication applications and adjudication responses. A contract may also impose a shorter response period than the statutory maximum.
Missing a deadline or omitting a reason from a payment schedule can materially affect the position. Advice should be obtained as soon as a claim, schedule or adjudication application is received.
For claimants
Pezikian Legal can assist contractors, subcontractors, suppliers, plant hirers and consultants to assess entitlement, prepare a payment claim and respond to a disputed or unpaid claim.
- Reviewing the contract and available reference date or entitlement to claim
- Preparing or reviewing payment claims and supporting schedules
- Responding to payment schedules
- Preparing adjudication applications
- Advising on suspension, enforcement and court recovery options
For respondents
A respondent should identify the date the claim was received, decide whether the full amount will be paid and, if not, prepare a payment schedule that states the scheduled amount and all reasons relied upon.
Pezikian Legal can review the underlying valuation, defects, variations, delay, set-off and contractual issues and help prepare a clear response within the applicable timeframe.
- Assessing whether the document is a payment claim
- Preparing or reviewing payment schedules
- Responding to adjudication applications
- Advising on jurisdictional issues and available court remedies
- Coordinating the statutory response with the broader contract dispute
Documents to provide immediately
- Complete contract, scope, drawings and specifications
- Payment claim, invoice and evidence of service
- Any payment schedule or adjudication documents
- Variations, site instructions and extension-of-time notices
- Progress reports, photographs and valuation material
- Project correspondence and a dated chronology
- Records of previous claims, payments and disputed amounts