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You are a respondent if you:
A payment schedule is a written notice that you serve upon the claimant should you not intend to pay the full amount that is stated in the payment claim under the Act.
If you do not serve a payment schedule to the claimant within the requisite timeframe, you are automatically liable for the amount claimed. If the claimant sues for the amount owing, you are not able to raise any defence based on the construction contract or raise any cross claim. It is therefore advisable that you keep an accurate record of when you received the payment claim and the date of when the claimant must receive your payment schedule.
If your payment schedule is disputed by the claimant, they may apply for adjudication.
If this occurs you have a maximum of:
Note – you are not able to raise any defence, set off, cross-claim or other reasons for not paying the claim which you did not raise in the payment schedule.
What happens if you do not respond in time with a payment schedule and do not pay the claimant on the due date?
The claimant will have recourse to the following actions against you:
The claimant is able to exercise this right under the Act, following two business days’ warning, if you fail to pay:
Once you have paid the whole amount due to the claimant, the claimant must resume work within three business days. If you have suffered loss or expense due to a consequence of the suspension of works, the claimant is not liable for costs stemming from this regardless of condition to the contrary in the contract. If you attempt to deduct any part of the work or supply of goods and services from the claimant due to the suspension, you will be liable for any loss or expense suffered by the claimant.
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