The main purpose of the Security of Payment Act, across all its variations in the particular States or Territories of Australia, is to provide for entitlements to progress payments for persons who carry out construction work or who supply related goods and services under construction contracts.
The key objective of the Act is to ensure that any person who undertakes to carry out construction work or who undertakes to supply related goods and services under a construction contract is entitled to receive, and is able to recover, progress payments in relation to the carrying out of that work and the supplying of those goods and services.
The means by which this Act ensures that a person is entitled to receive a progress payment is by granting a statutory entitlement to that payment in accordance with this Act. The means by which this Act ensures that a person is able to recover a progress payment is by establishing a procedure that involves—
(a) the making of a payment claim by the person claiming payment; and
(b) the provision of a payment schedule by the person by whom the payment is payable; and
(c) the referral of any disputed claim to an adjudicator for determination; and
(d) the payment of the amount of the progress payment determined by the adjudicator; and
(e) the recovery of the progress payment in the event of a failure to pay.
It is intended that this Act does not limit—
(a) any other entitlement that a claimant may have under a construction contract; or
(b) any other remedy that a claimant may have for recovering that other entitlement.
The Acts, in its variants across the States and Territories, introduced a unique form of ‘rapid adjudication’ of disputes over progress payment amounts whereby an independent adjudicator makes an interim determination as to the amount of progress payment, if any, to be paid by the respondent to the claimant.
This determination is an independent and expert assessment of the information presented by a Claimant within the adjudication application and the Respondent within any response to that adjudication application. If a respondent does not comply with an adjudication decision, the claimant may obtain an adjudication certificate for lodgement at the appropriate court which registers it as a judgment debt.
In order to commence a claim under the Act, there must be a Payment Claim made against a party to a construction contract (either written or oral) in relation to construction work or the supply of related goods and services for construction work in a State or Territory where the Act is the law. This is the first and most important step in the appropriate approach inline with the requirements as set out in the Act.
Contact Adjudicate For You for a free consultation about the process and how it can help you get paid for work you have performed.