Security Of Payment Act NSW works to assist claimants receive payment in a reasonable time, and assists claimants resolve a disputed payment claim through adjudication if necessary.

If you have carried out construction work, or supplied related goods or services under a construction contract, which can be an oral agreement or a written agreement, you are entitled to be paid for the work within a maximum time of 20 business days.

If your client chooses to dispute the amount that you are claiming they must do so within 10 business days of receiving your payment claim, and they must do so in accordance with the provisions of the Security of Payment Act NSW.

The dispute is then resolved through an adjudication process based on written submissions. This process enables a claimant to avoid costly legal proceedings and does not require any appearances by either party.

Once an adjudicator determines that a respondent must pay the claimant, an amount known as the “adjudicated amount”, the respondent has 5 business days to pay the adjudicated amount.

If the respondent does not pay the adjudicated amount within the prescribed time, the determination made under the Security Of Payment Act NSW can be registered as a judgment debt with a court and enforced in the same way as any other court judgment.