Topic 4: Applying for adjudication
Adjudication is a dispute resolution process to assist parties to resolve disagreements about a payment claim made for a progress payment. You can apply for adjudication where:
- You have made a valid payment claim under the Building and Construction Industry (Security of Payment) Act 2021 (the Act) and do not agree with the reasons for withholding payment set out in the payment schedule received; or
- You have made valid a payment claim under the Act and not received a payment schedule by the due date; or
- You have made a valid payment claim under the Act, received a payment schedule, but the amount that was to be paid in the payment schedule was not paid to you by the due date.
To apply for adjudication in these circumstances, you must act quickly. Different timeframes and requirements apply depending on the circumstances.
You can find further information about your eligibility to apply for adjudication, timeframes and the process involved with making an application in the following video and fact sheet. A template form has also been provided to assist you in applying for adjudication.
It is important to be aware that fees apply for adjudication. The person appointed to adjudicate the payment claim, the adjudicator, will be entitled to charge fees and expenses for their time. Likewise, other fees and charges may apply for applications give to authorised nominating authorities to cover the administrative fees.
Generally, both you and the respondent will be liable to pay the adjudicators fees and expenses in equal shares (50 percent each). The adjudicator does have the discretion however in certain circumstances to apply the fees and expenses in different shares. Nether you or the respondent is entitled to any legal fees or other expenses incurred in applying for adjudication.
The amount of the adjudicator’s fees and expenses will generally be charged on an hourly rate as published by the Building Commissioner or agreed between both parties. The total fees paid will depend on the time taken to determine the application. Where your payment claim is $50,000 (including GST) or less, then the adjudicator is only entitled to charge fees and expenses up to a maximum total limit. These maximum limits are set out in the table below.
|Payment claim amount||Maximum Adjudication fee|
|Not more than $5,000||$900|
|$5,000 - $15,000||$1,500|
|$15,000 - $20,000||$2,750|
|$20,000 - $25,000||$3,300|
|$25,000 - $40,000||$5,500|
|$40,000 - $50,000||$7,250|
Prior to determining your adjudication application, the adjudicator may request a deposit to cover their anticipated fees and expenses. Any deposit paid will be reconciled in the adjudicator’s determination. Adjudicators are entitled to charge fees and expenses even where they determine that no amount of the payment claim is owing (because they do not have jurisdiction or other circumstances apply), or you withdraw your application before a determination is made. An adjudicator is entitled to withhold the release of their determination until their fees and expenses are paid.
If an adjudicator does not make their determination within the time required, or any extension granted by you or the respondent, they are not entitled to charge for their fees and expenses.
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