Transcript
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.