Application for Adjudication

Provided all the requirements (referred to in the Payment Claim and Payment Schedule) and time frames within the process (referred below) have been met, the claimant can now apply for adjudication.

Time frames for Adjudication Application

These are three (3) very simplified time frames for making an application for adjudication:

1. If the respondent serves a payment schedule for the full amount but fails to pay all or part of the scheduled amount on or before the due date for payment, the claimant can choose one of the following:

  • Apply for adjudication within 20 business days after the due date for payment and/or suspend construction work or supply of related goods and services
  • Recover the unpaid portion as a statutory debt created under the Act in a court of competent jurisdiction and/or suspend construction work or supply of related goods or services (refer to FAQs)

2. If the respondent serves a payment schedule for an amount less than the full amount:

  • The claimant may accept the lesser amount and wait until the due date for payment.
  • If the claimant is paid, there is no further action.
  • If the claimant is not paid, the claimant may apply for adjudication within 20 business days after the due date for payment.
  • The claimant does not accept the lesser amount.
  • The claimant may apply for adjudication within 10 business days after receipt of the payment schedule.

3. If the respondent does not serve a payment schedule within 10 business days and the due date for payment has passed, the claimant can choose one of the following:

  • Apply for adjudication within 20 business days after the due date for payment and/or suspend construction work or supply of related goods and services. If the claimant chooses adjudication, they must give a s21(2) notice of intention to the respondent within 20 business days:

    • In writing
    • Clearly addressed to the respondent
    • Identify the payment claim served
    • State that the claimant is proceeding to adjudication
    • State that the respondent has 5 business days to serve a payment schedule on the claimant. nb: the respondent has another chance to provide a payment schedule.

    The claimant has 10 business days after the end of the 5 business days allowed for the payment schedule to apply for adjudication.

  • Recover the unpaid portion as a statutory debt created under the Act in a court of competent jurisdiction and/or suspend construction work or supply of related goods or services (refer to FAQs).

What should be in an Adjudication Application?

The adjudication application should:

  • Be in writing
  • Be addressed to the ANA
  • Contain a copy of the payment claim
  • Contain a copy of the payment schedule received from the respondent
  • Contain a copy of the contract (if any)
  • Contain submissions and all information relevant to the payment claim, such as the history of the relationship between the parties, and all correspondence and documentation that will support the claim.
  • Be accompanied by the application fee (if any).

A copy of the adjudication application must be served on the respondent at the same time that the application is sent to the ANA. Evidence of service of the application to the respondent should be provided to the ANA. The copy sent to the ANA must be identical to the copy sent to the respondent.

Appointing an adjudicator

The Queensland Law Society ANA refers the application to an adjudicator who accepts by serving notice of acceptance on both the claimant and the respondent.

If the claimant does not receive notice of acceptance within 4 business days after the application is made the claimant may withdraw the application and make a new application.

The Adjudication Response

Once the respondent receives the adjudication application the respondent may give an adjudication response to the adjudicator and must serve a copy on the claimant.

The adjudication response may only be given within the later of:

  • 5 business days of the respondent receiving a copy of the application; or
  • 2 business days after receiving notice of acceptance of the application.

The adjudication response must:

  • Be in writing.
  • Identify the application to which it relates.
  • Must be made within the correct timeframe
  • Must be sent to the adjudicator
  • Must be sent to the claimant
  • Should include in full details the reasons for withholding payment and include all supporting documentation. It is useful to deal with each ground that is raised in the payment schedule. If the respondent believes that the claimant had no right to submit the payment claim or that the adjudicator does not have the jurisdiction, these points can also be included in the adjudication response.
  • Not include any reason for withholding payment unless those reasons have already been included in the payment schedule provided to the claimant.

nb: the respondent may only give the response to the adjudicator if the respondent served a payment schedule on the claimant.

The Adjudicator’s Decision

Once the adjudicator accepts the application, the adjudicator must decide within 10 business days:

  • The amount of the progress payment.
  • The date on which any amount is payable.
  • The rate of the interest payable.

The decision must be in writing and include reasons.

The adjudicator is also able to decide the proportion of the adjudication fees and expenses payable by each party.

Release of the decision

The adjudicator will notify the parties that a decision has been made and deliver to them an account for payment of the adjudicator’s fees and expenses (if any).

Upon payment of the adjudicator’s fees and any expenses, in full, the decision will be released.

Nb: the claimant must ensure that a copy of the adjudication decision is served on the respondent in the same way as previous documents such as the payment claim. Service is vital as the period for payment depends on the date of service of the decision. The Queensland Law Society ANA does not take responsibility for serving the decision.

Respondent required to pay adjudicated amount

If the decision is in favour of the claimant, the respondent is required to pay either:

  • within 5 business days from the date of service of the decision or
  • a later date as stated by the adjudicator in the decision.

The respondent fails to pay – obtain an Adjudication Certificate

If the respondent fails to pay the whole or any part of the adjudicated amount within time the claimant may apply to the Queensland Law Society ANA for an adjudication certificate. The application is accompanied by a fee of $275.00.

The certificate is a form which certifies the details of the decision. The claimant may also ask the Queensland Law Society ANA to state any unpaid share of fees in the adjudication certificate.

The claimant may take this form, which is accompanied by an affidavit confirming what amounts have been paid, and file it in the appropriate court as a judgement debt.

The claimant can then take steps for enforcement of the amount as a judgement debt. Information on enforcement options can be found on pages 15-16 of the BCIPA Information Kit at: bcipa.qld.gov.au