Help For The Key Stages of Security Of Payment Act NSW Are Set Out Here Below:
Know Where You Fit In The Contracting Chain
Ultimately the principal is the highest link in the contracting chain, the end user. Then comes the main contractor. And then comes subcontractors and suppliers. Consultants may also be engaged by the principal but could be engaged by any staheholder in the contracting chain.
This is the stage of the process where you can make or brake your fortunes on a construction project. What needs to by properly understood is that whatever you agree to is binding. For example date for completion is crucial if liquidated damages are agreed to.
Paying proper attention to contract administration is crucial to being paid in full for all of your work and also for avoiding penalties such as liquidated damages. While as this may not sound too attractive the reality is that contract admin is as important as doing the actual work itself.
Making A Claim
This is the first step in the process that leads to having a payment dispute resolved through adjudication, and the validity of the form and service of the payment claim itself is crucial to success at adjudciation. The payment claim can be simple, but it must meet all of the statutory requirements of the Security Of Payment Act NSW.
Defending A Claim
Preparing and serving a valid payment schedule is the first step in the process that leads to having a payment dispute resolved through adjudication, and the validity of the form and service of the payment schedule itself is crucial to successfully defending a claim at adjudication. The payment schedule can be simple, but it must meet all of the statutory requirements of the Security Of Payment Act NSW otherwise it may mean you are limited in your defence at adjudication.
Applying For Adjudication
This is the step in the process where your payment claim is determined as; valid or invalid, and payable in part, or in full, or not all. The very purpose of the Security Of Payment Act NSW is to have a payment dispute, or non payment resolved by an adjudicator by way of an enforceable determination.
Payment Withholding Request
Once an adjudication application has been lodged a subcontractor can serve a payment withholding request on a principal. This means that any money owed to the entity that you are contracted to can be withheld from them by the entity that they are contracted to and paid directly to you.
Once the adjudication process has been completed the respondent has 5 business days to pay. If the respondent does not pay in full in this time the claimant can obtain an adjudciation certificate and register it with a court as a judgment that is enforecable in the same ways as any other court judgment.