Construction work was carried out in NSW and has not been paid in full
A payment claim is served — it must state that it is made under the Act, be served on or from the last day of the named month in which the work was carried out (unless the contract provides an earlier date), and be served within 12 months of last carrying out the work (s 13)
The respondent has 10 business days to serve a payment schedule (s 14)
If no schedule is served and the amount is unpaid
The claimant may recover the amount as a debt in court (s 15), or apply for adjudication
To adjudicate: a s 17(2) notice must be given within 20 business days of the due date → the respondent has 5 business days → the application is then lodged within 10 business days
If a schedule is served
Scheduled amount is less than claimed and is disputed
Adjudication application within 10 business days of receiving the schedule (s 17(3)(c))
Scheduled amount is unpaid by the due date
Adjudication application within 20 business days of the due date (s 17(3)(d))
both routes lead to
An independent adjudicator determines the application (generally within 10 business days of accepting it, subject to extensions) (s 21)
The adjudicated amount is payable within 5 business days of the determination, or by a later date the adjudicator fixes (s 23)
If unpaid, an adjudication certificate may be obtained and filed as a judgment for enforcement; work may be suspended on 2 business days' notice (s 27)
General overview of the NSW process for contracts entered into on or after 21 October 2019. Due dates are 15 business days (head contractors) or 20 business days (subcontractors) for commercial contracts, and 10 business days for exempt residential construction contracts, unless the contract provides an earlier date (s 11). Timeframes are a general guide only and can be affected by your contract. This is not legal advice.
