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In South Australia, the Building and Construction Industry Security of Payment Act 2009 (the Act) covers those carrying out construction work under a construction contract.
This information sheet sets out the process for adjudication of unpaid payment claims made under the Act.
Adjudication is an alternative process to going to court. It is intended to be quick and cost-effective, in order to keep the money flowing through the contracting chain.
The claimant must notify the respondent of their intention to apply for adjudication within 20 business days of the payment being due.
If the respondent hasn’t provided a payment schedule, they must be given an additional 5 business days after receiving notice of the claimant's intention to apply for adjudication.
The application must:
Timing of the application depends on the events prior to the application. If:
Once received, the authorised nominating authority will refer the application to an adjudicator. If the adjudicator accepts the nomination, they will notify the claimant and the respondent in writing.
A response to an application may be served on the claimant and the adjudicator by the later of either:
The response must:
The adjudicator has 10 business days from the date the response was received, or due to be received, in which to make a determination. The determination will be provided to both parties and will detail:
If the respondent fails to pay the determined amount by the due date, the claimant has the option to suspend the work by written notice, in accordance with the Act.
The claimant may also request an adjudication certificate from the authorised nominating authority. The certificate can be filed as a judgment for a debt in court and will then become enforceable.
The adjudicator’s fees are typically shared between the parties, however the adjudicator has the power to determine the proportion of the fees to be paid by each party. If one party fails to pay their share of the fees, the adjudicator may make a determination for costs.
If a party disagrees with a determination, they have the option to take the matter to court, but not as a part of the initial filing for a judgment debt.
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