Security of Payment Act Flowchart Claimant serves

payment claim
1
Supply contract: Contract terms (60d max) or 30d after invoice (claim) is served

Construction contract:
1
Contract terms (21d max) or 7d after claim is served
Stipulated
date for
payment
response

Does the Does the

No payment No respondent Yes Full, partial or no claimant dispute No
response issue a payment payment proposed the payment
response? response?

Construction contract:
Dispute Contract terms (35d max)
settlement Yes 1
or 14d after stipulated
period date for payment response
or tax invoice (if applicable)
is provided
7d

Construction contract:
1
Contract terms (35d max) or 14d after stipulated date for Payment
Is the dispute Yes payment response or tax invoice (if applicable) is provided due date
resolved?

No 7d (max) 7d (max)
Claimant issues No Does the
after dispute settlement period after payment due date
notice of intention to respondent pay
apply for adjudication accordingly?

Claimant applies to
ANB for adjudication. Respondent receives copy of
ANB copies to adjudication application Yes
2
respondent
7d (max) 7d (max)

ANB appoints adjudicator Respondent serves Process under the Act

and confirms appointment adjudication response to ANB. completed
2 2
with all parties ANB copies to claimant

Adjudication
commences

14d (max)

Adjudication
2
determination

7d after adjudication determination

Adjudicated
amount due
date

7d (max) after
adjudication
determination
7d (max)
Does
ANB appoints Respondent applies to Yes respondent Yes Has adjudicated
adjudicator(s) and ANB for review. ANB want to apply
2 amount been
confirms appointment copies to claimant 3
for review ? paid?
14d (max)

Review No No
2
determination

7d after review determination

Adjudicated Process under the Act

amount due completed
date

Does
Does claimant Yes 4
respondent pay No Claimant issues
pay the
the adjudicated notice to suspend
adjudicated 2
amount? work / service
amount?

No Yes

7d after suspension notice

Claimant suspends
work / service

Notes:
i) ANB Authorised Nominating Body
Respondent recovers Respondent makes
from claimant under payment to the ii) d Calendar days (excluding official public holidays)
contractual provisions claimant iii) max Maximum allowable period
or common law
3d (max) iv) 1 Default days if not stated in contract
Claimant resumes v) 2 Principal (if known) and owner to be notified
work / service if he vi) 3 Respondent may apply for adjudication review only if the
has suspended difference between the response amount and adjudicated
amount is large.

Process under the Act vii) 4 Other consequences of non-payment of adjudicated amount
completed under the Act include the claimants right to exercise lien and
the enforcement of adjudication determination as a judgment
debt.

* Important: The flowchart does not cover all situations and details of the Security of Payment Act. For full appreciation of the rights and obligations, please consult the Act or obtain legal advice.