Alert – Security of Payment claims over Christmas

14 December 2011

The Christmas period is seen by many in the construction industry as an opportunity to serve payment claims or have claims for payment of construction work adjudicated under the security of payment legislation — in the hope those claims or applications will go unanswered or the other party will be ill-prepared to defend them.

Upon receipt of a payment claim made under the security of payment legislation or an adjudication application, the respondent must serve a payment schedule in response to the payment claim, or its detailed adjudication response to the application, to answer the claims made.

If you receive a payment claim or an adjudication application during the Christmas period, you will need procedures in place to ensure that it is brought to the attention of the relevant people concerned and in good time so they are able to respond within the strict time limits required by the legislation.

A summary of the time limits for providing payment schedules or adjudication responses for each state/territory is below. It is important to note that in many jurisdictions, time continues to run over much of the traditional shutdown period.

Jurisdiction	Payment Schedules	Adjudication Response	Timing
Australian Capital Territory	Within 10 business days of receiving a payment claim, or any shorter time in the contract.	Within the later of: 7 business days after receiving the adjudication application or 5 business days after receiving notice that the adjudicator has accepted his or her appointment.	Business days exclude Saturdays, Sundays, public holidays and 27 to 31 December inclusive
New South Wales Queensland	Within 10 business days of receiving a payment claim, or any shorter time in the contract.	Within the later of: 5 business days after receiving the adjudication application or 2 business days after receiving notice that the adjudicator has accepted his or her appointment.	Business days exclude Saturdays, Sundays, public holidays and 27 to 31 December inclusive.
Victoria	Within 10 business days of receiving a payment claim, or any shorter time in the contract.	Within the later of: 5 business days after receiving the adjudication application or 2 business days after receiving notice that the adjudicator has accepted his or her appointment.	Business days exclude Saturdays, Sundays, and public holidays.
Northern Territory	Within: the time required by the contract, or 14 working days if the contract does not have payment provisions.	Within 10 working days of receiving an adjudication application.	Working day excludes Saturdays, Sundays and public holidays.
Western Australia	Within: the time required by the contract, or within 14 days if the contract does not have payment provisions.	Within 14 days of receiving an adjudication application.	If the day is a Saturday, Sunday or public holiday, the action is required on the next day.
Tasmania	Within: 20 business days if related to a residential structure or 10 business days for other cases.	Within: 5 business days after receiving the adjudication application or 2 business days after receiving notice that the adjudicator has accepted the adjudication application.	Business days exclude Saturdays, Sundays and public holidays.
South Australia	Within: 15 business days of receiving a payment claim, or any shorter time in the contract.	Within: 5 business days after receiving the adjudication application or 2 business days after receiving notice that the adjudicator has accepted the adjudication application.	Business days exclude a Saturdays, Sundays, public holiday and 27 to 31 December inclusive.

Next steps

If you anticipate receiving a payment claim or an application over the Christmas period, we suggest:

having personnel ready in advance to identify applications or payment claims made under the security of payment legislation;
providing an adjudication response or payment schedule within the time period required, taking into consideration the Christmas shutdown.