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Every day, individuals and organisations enter into contracts for building and construction work. Sometimes disputes arise over payment.
The Construction Contracts Act 2004 (the Act) provides for a rapid adjudication to resolve these disputes, whether they are written or oral contracts.
Adjudication is when an adjudicator – a registered, trained professional experienced in construction contract administration and dispute resolution – is appointed to review the issue and expedite payment.
Adjudication claims must be lodged within 90 business days of a payment dispute arising (details over page). The Act also ensures payment terms and conditions in contracts are fair to all parties.
The Act does not cover salary or wage disputes (see ‘Frequently asked questions’).
A business day includes any day other than Saturday, Sunday, public holiday, or any day between 25 December and 7 January.
Claimant – the party that claims payment under the terms of the construction contract.
Respondent – the party that benefited from the claimant’s construction work, service or materials.
Appointor – a person or an organisation that is allowed to appoint adjudicators.
Adjudicator – registered, trained professionals who are authorised to review and determine construction contract payment disputes.
A claim for payment for work or the supply of goods and/or services must be made in accordance with the written contract. In the case of an oral contract the payment claim must:
Within 90 business days the claimant may:
Our website provides a link to the Act, which is available on the Parliamentary Counsel's Office website.
A dispute arises when the amount claimed; or the amount retained; or the security held by a party to a contract becomes due and has not been paid in full or is paid in part.
Yes. The adjudicator charges a fee that is usually split between the parties.
No. Adjudication is based on the paperwork submitted by parties to the adjudicator, however either party may use a lawyer to help prepare the material.
Yes. All legal and contractual rights are preserved and can be used.
No. The Construction Contracts Act 2004 specifically excludes those disputes. Who do I contact about a salary or wage dispute? You need to contact the Fair Work Ombudsman on 13 13 94.