This section is for builders, developers, companies, organisations, private individuals, who have recied a payment claim or ordinary invoice from a contractor, supplier, and consultant who are claiming to be owed money for construction work and or related goods & services provided for a construction project situated in NSW by you.
Building & Construction Industry Security Of Payments Act 1999
Including October 2013 Amendments.
Defending A Claim Made Under The Security Of Payments Act NSW
To successfully defend a Payment Claim that has been made under the Security Of Payments Act NSW 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:
If you have served a Payment Schedule, you must lodge an Adjudication Response within the time frame allowed. If you haven’t served a Payment Schedule the Security Of Payments Act NSW bars you from lodging an adjudication response.
You have received an Adjudication Determination:
The Adjudicator will set out how much you have to pay if any and when. The Adjudicators decision even 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 time frame allowed under the Security Of Payments Act NSW.
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.