Frequently Asked Questions (FAQs)

Is a payment claim the same as my regular invoice?

NO – a payment claim must have all of the elements referred to in the section Payment Claim.

What is a business day?

A “business day” is a day that is not a gazetted public holiday or a Saturday or Sunday. You should start counting business days on the day after the event has occurred. Eg: to count the number of business days after a payment claim is served, the first business day is the day after the payment claim is served.

How do I serve a document?

A document can be served in the following ways:

Deliver to the party personally
Post to the party’s last known place of business or residential address
Fax to the party’s last known place of business or residential address
If the party is a company or body corporate, delivered, posted or faxed to its head office, registered office or principal office
Emails may not be deemed to be proper service unless the contract states that email can be used or there is a detailed history of email communication between the parties
As set out in the contract (if stated).

You should keep a record of service (time, date, place, means) and provide this record to the adjudicator.

What if I can’t serve the documents because I cannot find the respondent?

The BSA has an Online Licence Search which may provide the last known address of the contractor or you can search ASIC for the registered address of a company. The claimant may post documents to this last known address however the claimant may need to show that attempts to locate the respondent have been made – copies of searches etc.

Do I have to meet the adjudicator?

No – all communication is in writing. You should ensure that you clearly state your submissions in writing as the adjudicator makes his decision on the written material he receives from the parties.

How long before I receive a decision?

Once the application for adjudication has been received by the ANA, a decision is usually available within 16 business days. The adjudicator has the power to ask for an extension of time to make a decision but this can only be granted if both parties agree.

Can I withdraw the adjudication application?

The Act only specifically provides for withdrawal of an application in circumstances where the claimant does not receive an adjudicator’s notice of acceptance of an adjudication application within 4 business days after the application is made, or an adjudicator who accepts an adjudication application does not decide the application within the time allowed.

What happens if the company or individual goes into administration/liquidation or bankruptcy?

The adjudication process does not guarantee that the claimant will be paid if the company or individual goes into administration/liquidation or bankruptcy. You should seek legal advice to discuss your options. You may wish to start court proceedings in an attempt to become a secured creditor.

When can I not use this adjudication process?

The Act does not apply to the following:

A contract that forms part of a loan agreement, contract of guarantee or insurance under which a recognised financial institution undertakes to lend or repay or guarantee or provide an indemnity.
Domestic building works if a resident owner is a party to the contract.
A contract under which it is agreed the price is calculated by another way than by reference to the value of the work or the goods and services.
A contract under which a party carries out the construction work or supplies goods and services as an employee.
Construction work or supply of related goods and service supplied for construction work carried out outside Queensland.

What is a statutory debt?

As an alternative to proceeding to adjudication, the Act creates a statutory debt which enables the claimant to sue through the courts either:

when the respondent fails to pay the whole amount claimed by the due date for payment after they failed to serve a payment schedule within time or

when the respondent fails to pay the scheduled amount by the due date for payment after they provided a payment schedule.

Each court has a special process for handling statutory debts of this nature. Under these circumstances, the court is not required to assess damages, but is compelled to decide whether the respondent has failed to pay the amount determined under the Act. If the respondent elects not to dispute the claim, the claimant would usually expect to be able to obtain a default judgment after 28 days and then be in a position to commence proceedings to enforce payment. Some enforcement options are discussed on pages 15-16 of the BCIPA Information Kit at: bcipa.qld.gov.au