Security Of Payments Act ACT – Defending a Claim

Building & Construction Industry Security Of Payment Act 2009

Defending A Claim Under The Act

To successfully defend a Payment Claim that has been made under the Act you must respond correctly within the allowed time frame – IF YOU DO NOT RESPOND CORRECTLY AND WITHIN THE ALLOWED TIME FRAME YOU WILL BECOME LIABLE TO PAY THE DEBT:

You have received a Payment Claim:

You must either pay the amount claimed by the due date or serve a Payment Schedule on the Claimant . A Payment Schedule must identify the claim to which it relates and must indicate the amount you propose to pay. Furthermore and importantly you must indicate the reasons for withholding payment if you do not propose to pay the full amount. Indicating the reasons for withholding payment will become the foundation of your defence at Adjudication so you must pay special attention to this item.

You have received a 2nd Notice:

If you haven’t served a Payment Schedule on the Claimant you must do this within the time frame allowed

You have received an Adjudication Application:

You must lodge an Adjudication Response within the time frame allowed.

You have received an Adjudication Determination:

The Adjudicator will set out how much you have to pay if any and when. The Adjudicators decision binds the Crown so you must comply with the Determination.

You have received an Adjudicated Amounts Summary:

The summary will show the adjudicated amount you must pay plus the interest payable plus the Adjudicators Fee. You must pay the total amount within the timeframe allowed.

Enforcement Action has been commenced against you:

There are several options that may be used to enforce the debt you owe. If you are an individual the Judgement Creditor may garnish your bank, or your wages if you are employed, they can take a Lien over property you may own, or if the debt is over $5,000.00 they can commence Bankruptcy proceedings against you. If you are  a corporation the Judgement Creditor can garnish your bank, they can take a Lien over property you may own, they can issue a Creditors Statutory Demand For Payment, or they can use the Contractors Debts Act to garnishee the principal contractor.