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Security of Payment Act Flowchart Claimant applies to ANB for adjudication. ANB copies to respondent 2 ANB appoints adjudicator and confirms appointment with all parties 2 Respondent serves adjudication response to ANB. ANB copies to claimant 2 Adjudication commences 14d (max) Adjudication determination 2 7d after adjudication determination Adjudicated amount due date 7d (max) 7d (max) Construction contract: Contract terms (21d max) or 7d 1 after claim is served Stipulated date for payment response Payment due date Is the dispute resolved? No Yes Construction contract: Contract terms (35d max) or 14d 1 after stipulated date for payment response or tax invoice (if applicable) is provided Does the respondent pay accordingly? Claimant issues notice of intention to apply for adjudication Yes Construction contract: Contract terms (35d max) or 14d 1 after stipulated date for payment response or tax invoice (if applicable) is provided No No payment response Does the respondent issue a payment response? Full, partial or no payment proposed Does the claimant dispute the payment response? No Yes Dispute settlement period 7d 7d (max) after dispute settlement period 7d (max) after payment due date No Yes Claimant 4 issues notice to suspend work / service 2 Claimant suspends work / service Respondent makes payment to the claimant Claimant resumes work / service if he has suspended Has adjudicated amount been paid? Does respondent want to apply for review 3 ? Respondent applies to ANB for review. ANB copies to claimant 2 7d (max) after adjudication determination Yes Yes No No Process under the Act completed 3d (max) 7d after suspension notice ANB appoints adjudicator(s) and confirms appointment Review determination 2 Adjudicated amount due date Does claimant pay the adjudicated amount? Does respondent pay the adjudicated amount? Process under the Act completed Respondent recovers from claimant under contractual provisions or common law Yes No No Notes: i) ANB Authorised Nominating Body ii) d Calendar days (excluding official public holidays) iii) max Maximum allowable period iv) 1 Default days if not stated in contract v) 2 Principal (if known) and owner to be notified vi) 3 Respondent may apply for adjudication review only if the difference between the response amount and adjudicated amount is large. vii) 4 Other consequences of non-payment of adjudicated amount under the Act include the claimant’s right to exercise lien and the enforcement of adjudication determination as a judgment debt. Process under the Act completed Yes Supply contract: Contract terms (60d max) or 30d 1 after invoice (claim) is served 14d (max) 7d (max) * Important: The flowchart does not cover all situations and details of the Security of Payment Act. For full appreciation of the rights and obligations, please consult the Act or obtain legal advice. Respondent receives copy of adjudication application 7d after review determination Claimant serves payment claim

Security of Payment Act Flowchart

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Page 1: Security of Payment Act Flowchart

Security of Payment Act Flowchart

Claimant applies toANB for adjudication.

ANB copies torespondent2

ANB appoints adjudicatorand confirms appointment

with all parties2

Adjudicationcommences

14d (max)

Adjudicationdetermination2

7d after adju

Adjudicatedamount due

date

7d (max)

Construction contract:Contract terms (21d max) or 7d1 after claim is served

Stipulateddate forpaymentresponse

Paymentdue dateIs the dispute

resolved?

No

Yes

Construction contract:Contract terms (35d max) or 14d1 after stipulated date forpayment response or tax invoice (if applicable) is provided

Does theClaimant issuesnotice of intention toapply for adjudication

YesConstruction contract:Contract terms (35d max)or 14d1 after stipulateddate for payment responseor tax invoice (if applicable)is provided

NoNo paymentresponse

Does therespondent

issue a paymentresponse?

Full, partial or nopayment proposed

Does theclaimant dispute

the paymentresponse?

No Yes

Disputesettlement

period

7d

7d (max)after dispute settlement period

7a e No

Claimant4 issuesnotice to suspend

work / service2

Claimant suspendswork / service

Respondent makespayment to the

claimant

Claimant resumeswork / service if he

has suspended

Has adjudicatedamount been

paid?

Doesrespondent

want to applyfor review3?

Respondent applies toANB for review. ANBcopies to claimant2

7d (max) afteradjudicationdetermination

YesYes

NoNo

Process under the Actcompleted

3d (max)

7d after suspension notice

ANB appointsadjudicator(s) and

confirms appointment

Reviewdetermination2

Adjudicatedamount due

date

Does claimantpay the

adjudicatedamount?

Doesrespondent paythe adjudicated

amount?

Process under the Actcompleted

Respondent recoversfrom claimant under

contractual provisionsor common law

Yes No

No Yes

Supply contract: Contract terms (60d max) or 30d1 after invoice (claim) is served

14d (max)

7d (max)

* Important: The flowchart does not cover all situations and details of the Security of Payment Act. For full appreciation of the rights and

7d after review determination

Claimant servespayment claim

d (max)fter payment due dat

Respondent servesadjudication response to ANB.

ANB copies to claimant2

dication determination

7d (max)

respondent payaccordingly?

Yes

Process under the Actcompleted

obligatio

Respondent receives copy ofadjudication application

Notes:i) ANB Authorised Nominating Bodyii) d Calendar days (excluding official public holidays)iii) max Maximum allowable periodiv) 1 Default days if not stated in contractv) 2 Principal (if known) and owner to be notifiedvi) 3 Respondent may apply for adjudication review only if the

difference between the response amount and adjudicatedamount is large.

vii) 4 Other consequences of non-payment of adjudicated amount

under the Act include the claimant’s right to exercise lien andthe enforcement of adjudication determination as a judgmentdebt.

ns, please consult the Act or obtain legal advice.