Section 8: Can I ‘recycle’ a disputed payment claim?
From 15 December 2016, changes to the Act apply which provide greater flexibility in the time limits for making applications for adjudication of disputed payment claims. In essence, these changes complement what is known as ‘claims recycling’ under construction contracts.
Under these changes if a payment claim is made under a construction contract, and the claim is initially disputed or not paid, if the claim is made again under contract and again disputed or not paid, you now have 90 business days to make an application for adjudication from the latest time the payment claim is disputed or not paid.
Previously, the time limit for making an application for adjudication of a payment dispute commenced from the first occasion the payment claim was disputed or not paid.
Be aware the Act does not allow for a disputed payment claim to be ‘resurrected’ (i.e. provide an ability to make an application for adjudication when 90 business days has elapsed), if the amount or obligations performed which are being claimed have already been considered by an adjudicator.
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