Adjudication is a fast-tracked payment system for the construction industry in Queensland. It’s a quick cost-effective alternative to the court system. Are you using it?
So who can apply?
Anyone who has carried out work (or the supply of related goods) in the construction industry in Queensland.
Exemptions apply for: Work carried out under the QBCC Act 1991 (construction work completed directly for homeowner occupiers); Drilling for oil or gas; Extraction of minerals.
How to apply?
The application process is facilitated by the QBCC. All forms available online at qbcc.qld.gov.au.
Filing fees with QBCC depend on the amount claimed and vary between $59.70 to a maximum of $5,972.30. In addition to the filing fees, there are also fees payable to the adjudicator, which again depend upon the amount claimed.
Strict Time Frames
The time frames for filing of an Adjudication are very strict and depend upon whether a Payment Schedule was received. The application must be filed:
- If you receive a payment schedule and disagree with it – within 30 business days after the payment schedule was given
- If you receive a payment schedule but you’re not paid in full by the due date – within 20 business days after the due date.
- If you’re not paid in full by the due date and don’t receive a payment schedule – 30 business days after the later of:
- the day of the due date for the progress payment to which the claim relates; or
- the last day the respondent could have given a payment schedule.
If the time frame is missed, you lose your opportunity to apply for Adjudication.
Once you have filed your application, the other party will then have 10 business days in which to respond. An adjudicator will then make a decision within a further 10 business days. These time frame can be extended in certain circumstances.
Importantly, the decision is binding on all parties. If one party refuses to comply with the order made, the order can be registered as a judgment in court and enforced like any other court judgment.
It is also an offence for a party to not comply with an Adjudicator’s Decision, penalties apply and QBCC may take disciplinary action.
Unsure about how to apply for Adjudication? Contact Melissa Ban of our office to discuss your circumstances further.
6 November 2020