How to Make an Adjudication Application in Queensland

An adjudication application in the building and construction industry is a great way to quickly recover debts without the cost of commencing Court action.

From service of the BIFA payment claim, an adjudicator can have a decision to the adjudication application in around 10 weeks.

Once registered in the Court, the adjudication certificate becomes an enforceable money order in the Court and can be enforced as if it were a judgment of that Court.

An application for adjudication can be a time-saving, cost-effective way of recovering building and construction debts.  However, there is a very strict process which must be followed.

This article will give you give you all the information that you need to make an application for adjudication of a debt claim in building and construction in Queensland.

Contact us for advice and assistance with Building and Construction Disputes

If you need to make an adjudication application then time is of the essence.  Contact a building and construction debt recovery lawyer

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Making a BIFA Payment Claim

The right to make an adjudication application is derived from the Building Industry Fairness (Security of Payment) Act 2017 (Qld) (“BIFA”).

The process involves:

1. Making a BIFA payment claim; and
2. Getting a BIFA payment schedule.

If a debtor given a payment claim does not pay the amount owed in full on or before the due date for the progress payment. You may either recover the unpaid portion of the amount owed from the respondent, as a debt owing to the claimant, in a court of competent jurisdiction; or apply for adjudication of the payment claim.

This article will concentrate on the adjudication application.  For more information on making a BIFA payment claim then read our article – Making a Payment Claim – BIFA (QLD).

What to Include in a BIFA Payment Claim

The payment claim is an important first step in the adjudication process as the payment claim (and the payment schedule) form the basis of the application and defines the scope of the dispute before the adjudicator.

Section 68 of BIFA says that a payment claim:

1. Must be in writing;
2. Must identify the construction work or related goods and services to which the claim relates;
3. Must state the amount of the progress payment that the claimant claims is payable;
4. Must request payment of the claimed amount – written document bearing the word ‘invoice’ is taken to satisfy this;
5. Must be made to a person (respondent) who, under the relevant construction contract, is or may be liable to make the payment (the contractor); and
6. May include an amount that was included in a previous payment claim.

The purpose of the payment claim and payment schedule is to define the issues in dispute between the parties, and this has an important effect on the adjudicator’s right to consider information. 

Because of this it is very important that you include as much information as possible.  We strongly advise seeking legal advice.

If you do not Receive a Payment Schedule

If you do not receive a payment schedule, then section 77 of BIFA says:

(1) This section applies if a respondent given a payment claim does not respond to the claim by giving the claimant a payment schedule as required under section 76.

(2) The respondent is liable to pay the amount claimed under the payment claim to the claimant on the due date for the progress payment to which the payment claim relates.

If the person responsible for payment does not provide a payment schedule, then they are liable to pay the entire amount of the payment claim.

This can be done by originating application as in BHW Solutions Pty Ltd v Altitude Constructions Pty Ltd [2012] QSC 214 and Wetlock Industries Pty Ltd trading as Wetlock Waterproofing v Body Corporate for City Link [2016] QMC 9.

However, in the view of the writer, in most cases it might be more properly made by making an adjudication application or filing a claim and statement of claim followed by either default judgment or summary judgment.

In National Vegetation Management Solutions P/L v. Shekar Plant Hire P/L [2010] QSC 3 Margaret Wilson J said:

Ordinarily a proceeding to recover a debt should be brought by claim and statement of claim, and the plaintiff may make an application for summary judgment at any time after the defendant files a notice of intention to defend [UCPR, rr 10, 292]. Under r 11(a) of the UCPR, a proceeding may be commenced by originating application if the only or main issue in the proceeding is an issue of law and a dispute of fact is unlikely.

In Fancourt v Mercantile Credits Ltd [1983] HCA 25 the High Court said:

The power to order summary or final judgment is one that should be exercised with great care and should never be exercised unless it is clear that there is no real question to be tried.

However, it is more common that the respondent will provide a payment schedule disputing the entire amount or part of the amount claimed.

Consequences of Failing to Provide a Payment Schedule

The consequences of failing to provide a payment schedule include having proceedings commenced against the respondent, default or summary judgment entered against the respondent, and the potential for enforcement proceedings, including the issuance of a creditor’s statutory demand and the subsequent winding up application.

If you Receive a Payment Schedule

Section 79 of BIFA says that if a claimant receives a payment schedule then the claimant is able to make an adjudication application if either:

1. There is a failure by the respondent to pay an amount owed to the claimant by the due date for the payment; or
2. The amount stated in the payment schedule is less than the amount stated in the payment claim.

For more information on making a BIFA payment claim then read our article – Making a Payment Claim – BIFA (QLD).

So, what is an adjudication application?

How to Make an Adjudication Application

Section 79 of BIFA says that an adjudication application:

1. Must be in the approved form; and
2. Must be made in the correct timeframe; and
3. Must identify the payment claim and the payment schedule to which it relates; and
4. Must be accompanied by the fee prescribed by regulation for the application; and
5. May contain the submissions relevant to the application the claimant chooses to include.

A copy must be provided to the respondent.  This will either be done by the claimant, or more likely it will be provided by the adjudication company.

We will explain the above criteria in more detail below.

QBCC Adjudication Application must be in the Approved Form

The approved form for the QBCC adjudication application in Queensland is QBCC Form S79.  The adjudication application form must include as much detail as possible on the following:

• Claimant details
• Claimant agent details (if applicable)
• Respondent details
• Respondent agent details (if applicable)
• Contract and project details
• Payment claim details
• Payment schedule detail
• Service of this application

The QBCC adjudication application form must also attach the following documents:

• A copy of the relevant contract, or if a written contract does not exist, a document referring to/demonstrating the terms of the verbal agreement
• A copy of the payment claim
• A copy of the payment schedule – if applicable
• Submissions proving your entitlement to the claimed amount.

Adjudication Application must be made in the Correct Time-frame

Section 79(2)(b) of BIFA says that an application must be made within:

For an application relating to a failure to give a payment schedule and pay the full amount stated in the payment claim—30 business days after the later of the following days:

• the day of the due date for the progress payment to which the claim relates;
• the last day the respondent could have given the payment schedule under section 76; or

For an application relating to a failure to pay the full amount stated in the payment schedule – 20 business days after the due date for the progress payment to which the claim relates; or

For an application relating to the amount stated in the payment schedule being less than the amount stated in the payment claim – 30 business days after the claimant receives the payment schedule.

So, a claimant has either 20 or 30 business days to make an adjudication application depending on the particular circumstances of your particular case.

BIFA has strict timeframes in relation to the adjudication process. The timeframes and requirements required under BIFA must be strictly adhered to by all parties and also the adjudicator.

Adjudication Application must Identify the Payment Claim and the Payment Schedule

As well as full details being included in the Form S79, the adjudication application must also include copies of the payment claim and the payment schedule (if applicable).

This is done by either annexing the payment claim and the payment schedule to the adjudication application, or the statutory declaration sent in support of the application.

Adjudication Application must be Accompanied by the Fee

The fees for making the application are outlined in Schedule 2 of the Building Industry Fairness (Security of Payment) Regulation 2018 (Qld).

The costs vary depending on the amount of the payment claim.  They are broken up into different amounts being:

1. for a payment claim for a progress payment of no more than $10,000;
2. for a payment claim of more than $10,000 but no more than $50,000;
3. for a payment claim of more than $50,000 but no more than $100,000;
4. for a payment claim of more than $100,000 but no more than $250,000;
5. for a payment claim of more than $250,000 but no more than $500,000;
6. for a payment claim of more than $500,000 but no more than $750,000;
7. for a payment claim of more than $750,000 but no more than $1,065,600
8. for a payment claim of more than $1,065,600

Check Schedule 2 of the Building Industry Fairness (Security of Payment) Regulation 2018 (Qld) for the current fees.

Submissions Relevant to the Application

The submissions in support of the adjudication application must explain the claim, include any and all statutory declarations by relevant persons, contain all emails, invoices, expert reports, faxes, purchase orders, photos, other relevant information.

Some other things to consider include (but not limited to):

1. A summary background of the project;
2. Information about the relevant contract;
3. Outline of any factual events which the claimant relies;
4. An explanation of how the claimant arrived at the valuation;
5. Evidence why there is an entitlement to payment;
6. An explanation in relation to what documents a claimant supplied;
7. An executive summary for ease of reading;
8. Any factual matrix on which the claimant relies;
9. A copy of the payment claim and the payment schedule;
10. Submissions in relation to Jurisdiction – including – the construction contract to which the act applies; a right to progress payment; a valid payment claim; and the adjudication application in accordance with BIFA;
11. The effect of payment schedule and details of the payment schedule;
12. Submissions on prohibition of reasons and deemed admissions;
13. Summary of claimant’s entitlement to progress payments;
14. Submissions on the due date for payment;
15. The rate of interest payable either under legislation or under the contract;
16. Submissions on who is liable for adjudicator’s fees;
17. Finish the adjudication application with a conclusion.

Once the adjudication application is drafted, and all of the supporting material is finalised, the application will be given to the Registrar.

Adjudication Application given to the Respondent

Section 79(3) of BIFA says:

A copy of an adjudication application must be given to the respondent.

The registrar must, within 4 business days after the application is received, refer the application to a person eligible to be an adjudicator.

An adjudication application must be lodged with the registrar no later than 5pm on a business day or is taken to be lodged on the next business day.

If the registrar refers the application to an adjudicator, he/she must accept or reject the referral within 4 business days after the referral is made.

Upon acceptance of an adjudication application an adjudicator is taken to have been appointed to decide the application.

After the giving of notice of the adjudicator’s acceptance the respondent must give the adjudicator a response to the adjudication application.

The Adjudication Response

The adjudication response must be given within the later of 10 business days after receiving the application, or 7 business days after receiving notice of the adjudicator’s acceptance.

The timing of the adjudication response is outlined in section 83 of BIFA which says:

(1) If responding to a standard payment claim, the respondent must give the adjudicator the adjudication response within the later of the following periods to end:

(a) 10 business days after receiving a copy of the adjudication application;

(b) 7 business days after receiving notice of the adjudicator’s acceptance of the adjudication application.

The adjudication response:

1. Must be in writing; and
2. Must identify the adjudication application to which it relates; and
3. May include the submissions relevant to the response the respondent chooses to include.

A respondent is not permitted to include in an adjudication response any reasons for withholding payment unless those reasons have already been included in the payment schedule and any attempt to introduce new reasons including details or amounts cannot be considered.

As mentioned above, section 82(4) of BIFA says that the adjudication response must not include any reasons for withholding payment that were not included in the payment schedule when given to the claimant.

The adjudicator may require the respondent to resubmit the adjudication response without the new reasons. 

Jurisdiction to Adjudicate a Construction Claim

The adjudicator will only have jurisdiction to decide an adjudication application if

1. The contract is a “construction contract” to which BIFA applies;
2. A right to progress payment has arisen;
3. A valid payment claim was served; and
4. The adjudication application has been brought in accordance BIFA.

What does the Adjudicator Consider?

In accordance with section 88(1) of BIFA, the Adjudicator must decide:

1. The amount of the progress payment, if any, to be paid by the respondent to the claimant (the “adjudicated amount”); and
2. The date on which any amount became or becomes payable; and
3. The rate of interest payable on any amount.

In deciding an adjudication application, section 88(2) of BIFA, the Adjudicator is to consider the following matters only:

1. The provisions of the relevant legislation;
2. The provisions of the relevant construction contract;
3. The payment claim to which the application relates, together with all submissions, including relevant documents, that have been properly made by the claimant in support of the claim;
4. The payment schedule to which the application relates, together with all submissions, including relevant documents, that have been properly made by the respondent in support of the schedule;
5. The results of any inspection carried out by the adjudicator of any matter to which the claim relates.

However, section 88(2) of BIFA says that the adjudicator must not consider any of the following:

1. An adjudication response, to which the adjudication application relates, that was not given to the adjudicator within the time required under section 83;
2. A reason included in an adjudication response to the adjudication application, if the reason is prohibited from being included in the response.

The adjudication response must not include any reasons for withholding payment that were not included in the payment schedule when given to the claimant.

Request for More Time and Further Submissions

Pursuant to section 84 of BIFA, the adjudicator may:

1. May ask for further written submissions from either party and must give the other party an opportunity to comment on the submissions; and
2. May set deadlines for further submissions and comments by the parties; and
3. May call a conference of the parties; and
4. May carry out an inspection of any matter to which the claim relates.

Section 86 of BIFA also allows the adjudicator more time, if the claimant and respondent agree in writing that the adjudicator has additional time to decide the application.

Once the adjudicator has read the material, and requested further submissions (if any), and been given any extensions of time (if any), then he/she will need to give a decision.

Adjudication Application Decision

Once the adjudication has begun, the adjudicator must decide a standard claim within 10 and 15 business days.

Section 85 of BIFA says:

Subject to section 86, an adjudicator must decide an adjudication application no later than—

(a) for a standard payment claim—10 business days after the response date; or

(b) for a complex payment claim—15 business days after the response date.

The response date is either the day on which the adjudicator receives the adjudication response; or otherwise – the last day on which the respondent could give a response.

The adjudicator will provide the decision and reasons for the decision.  Before the adjudicator provides his/her decision, they will usually require payment from the applicant.

Payment of the Adjudicator’s Fees

The adjudicator will usually charge on a time-billed basis for the time it has taken them to conduct the adjudication.

The fee is usually payable by the claimant in the first instance, but the adjudicator can award the costs of the adjudicators fees as part of the decision.

For example, if the adjudication of a debt in the amount of $60,000.00 costs $6,000.00, then the adjudicator can decide that the respondent pays $66,000.00 etc.

However, the adjudicator may decide a certain proportion of the adjudicator’s fees and expenses to be paid by the claimant and respondent.  For example, 50/50 or 25/75.

Section 96 of BIFA outlines the considerations that the adjudicator may consider when assessing the costs, it says:

In making the decision, the adjudicator—

(a) must consider the conduct of the claimant and respondent; and

(b) may consider any of the following matters—

(i) the relative success of the claimant or respondent in the adjudication;

(ii) whether the claimant or respondent commenced or participated in the adjudication for an improper purpose;

(iii) whether the claimant or respondent commenced or participated in the adjudication without reasonable prospects of success;

(iv) the reasons given by the respondent for not making the progress payment the subject of the adjudication application;

(v) whether an adjudication application is withdrawn;

(vi) the services provided by the adjudicator in adjudicating the adjudication application, including the amount of time taken to consider discrete aspects of the amount claimed;

(vii) another matter the adjudicator considers relevant in making the decision.

Once the adjudicator provides the decision, the respondent must pay the decided amount within five (5) days.

Respondent Required to Pay Adjudicated Amount

If the adjudicator decides that the respondent is required to pay money, the respondent must pay the adjudicated amount within five (5) business days.  Section 90 of BIFA says:

If an adjudicator decides that a respondent is required to pay an adjudicated amount, the respondent must pay the amount to the claimant on or before—

(a) the day that is 5 business days after the day on which a copy of the adjudicator’s decision is given to the respondent by the adjudicator.

The Registrar is required to provide an adjudication certificate.

A failure to pay an adjudicated amount is grounds for disciplinary action by the QBCC.

Further, failure to pay the adjudicated amount, the claimant may give the respondent written notice of the claimant’s intention to suspend carrying out construction work or supplying related goods and services.

You can also seek a judicial review of the decision in the Court.

Adjudication Certificate

Section 91 of BIFA states information which must be included in an adjudication certificate.  The adjudication certification certificate must include:

1. The name of the claimant;
2. The name of the respondent who is liable to pay the adjudicated amount;
3. The adjudicated amount;
4. The date on which payment of the adjudicated amount was required to be paid to the claimant;
5. The rate of interest payable on the adjudicated amount;
6. The fees, identified in the decision, that the respondent is to pay; and
7. That the certificate is made under this Act.

The adjudication certificate can then be registered in the Court with competent jurisdiction and enforced as a money order of that Court.  There is a fee payable to the Court for this.

Enforcement of an Adjudication Certificate

Section 93 of BIFA says:

An adjudication certificate may be filed as a judgment for a debt, and may be enforced, in a court of competent jurisdiction.

The adjudication certificate must be accompanied by an affidavit of the claimant stating that the whole or a part of the adjudicated amount has not been paid to the claimant at the time the certificate is filed.

Rule 793 of the Uniform Civil Procedure Rules 1999 (QLD) says:

“enforceable money order” of a court, means (a) a money order of the court; or (b) a money order of another court or tribunal filed or registered under an Act in the court for enforcement.

Because section 93 of BIFA allows for the adjudication certificate to be registered and enforced, in a court of competent jurisdiction, then rule 793 applies and the decision becomes an enforceable money order.

The jurisdiction of the Courts are:

1. Claims of up to $150,000.00 – Magistrates Court;
2. Claims from $150,000.01 to $750,000.00 – District Court; and
3. Claims from $750,000.01 – Supreme Court.

If the respondent tries to have the registered judgment set aside then he/she/it is not entitled to bring any counterclaim; or raise any defence; or challenge the decision; and is required to pay into the court, as security, the unpaid portion of the adjudicated amount pending the final decision in those proceedings.

Once registered as a judgment, the claimant, now judgment creditor, can enforce by:

1. Enforcement warrant;
2. Issuing a bankruptcy notice; or
3. Issuing a creditor’s statutory demand.

Enforcement Warrant

One method of enforcing the registered adjudication certificate is to obtain an enforcement warrant.  There are a number or enforcement warrants and orders that a judgment creditor can obtain, including:

1. Enforcement Warrant for Redirection of Debts
2. Enforcement Warrant for Redirection of Earnings
3. Enforcement Warrant for Seizure and Sale of Property

Please read the articles above in relation to enforcement warrants and enforcement hearing & statement of financial position.

We also suggest serving the judgment debtor with a creditor’s statutory demand.

Issuing a Creditor’s Statutory Demand

If the enforcement debtor is a company, then the enforcement creditor can issue the debtor with a statutory demand.

Once issued, the company will have 21 days to either pay the debt, secure or compound for the debt, or apply for the statutory demand to be set aside.

If the judgment debtor fails to do either of these things, then the debtor is presumed to be insolvent and the creditor can apply for an order that the debtor company be wound up in insolvency.

Best practice – annex the adjudication certificate and the registered Court form 1 to the affidavit in support of the statutory demand.

Read our Complete Guide to Statutory Demands

Can I Issue a Bankruptcy Notice?

A registered adjudication certificate can form the basis of a bankruptcy notice; however, care must be taken when registering the certificate.  You must ensure that the registrar both signs and seals the form 1 registration document.

In Adams v Northern Plumbing (NQ) Pty Ltd [2010] FMCA 224 it was held that an adjudication certificate once filed in a court of competent jurisdiction satisfies the form for a judgment.  It was also held that a BCIPA (now BIFA) adjudication decision filed in a court of competent jurisdiction does give rise to a final judgment or order at [53].

However, Adams above was distinguished by Ferris v Bilic [2014] FCCA 781 which said that the registered adjudication decision [form 1] which formed the basis of the bankruptcy notice was not signed in accordance 978 of the UCPR at [3] and [4].  Because of this, Judge Burnett said:

The requirements of s.41 are mandatory. In my view, it is not for this court to interfere with the processes of other courts. If the form is wanting, as I consider it to be, then the defect must be waived in the Magistrates Court. It is not open for this court to do so. It is not a final judgment … It follows that the application should be allowed, and that orders ought be made setting aside the bankruptcy notice.

The best way to overcome Ferris is to ensure that you get the Court to issue a signed and sealed judgment reflecting the adjudication decision.

Issuing a Bankruptcy Notice

A bankruptcy notice is issued by the Australian Financial Security Authority (“AFSA”).

Once a judgment creditor is given the bankruptcy notice, the notice will need to be served on the judgment creditor.  Service of a bankruptcy notice is made in accordance with regulation 16.01 of the Bankruptcy Regulations 1996 (Cth).  The bankruptcy notice can be served by:

1. Sent by post, or by a courier service, to the person at his or her last-known address; or
2. Left in an envelope at a document exchange; or
3. Left in an envelope at the last-known address of the person; or
4. Personally delivered to the person; or
5. Sent by facsimile transmission or another mode of electronic transmission (email).

Once served, the judgment debtor is required within 21 days after service of the Bankruptcy Notice, to either:

1. Pay to the creditor the amount of the debt claimed; or
2. Make arrangements to the creditor’s satisfaction for settlement of the debt.

A judgment debtor may also apply to the Court, within the time stated in the bankruptcy notice, for an order that it be set aside.

The grounds for setting aside a bankruptcy notice are that the debtor has a counter-claim, setoff or cross demand, equal to or exceeding the amount claimed in the Bankruptcy Notice, and they could not have set up that counter-claim, set-off or cross demand in the action or proceeding in which the judgment or order in respect of which the Bankruptcy Notice was issued was obtained.

In the building and construction industry, there are serious consequences if a person or a company becomes insolvent.

56AC of the QBCC Act

If a construction company becomes insolvent the section 56AC of the QBCC Act says if the company has a provisional liquidator, liquidator, administrator or controller appointed; or is wound up, or is ordered to be wound up – then the a director or secretary of, or an influential person for, the construction company currently or up to two (2) years prior – then they are excluded individuals.

This means that the company and the director, secretary, or influential person of the company, all lose their building licenses in Queensland.

Or, if the judgment debtor is an individual, if the individual takes advantage of the laws of bankruptcy or becomes bankrupt; and 3 years have not elapsed since the relevant bankruptcy event happened; then the individual is an excluded individual for the relevant bankruptcy event.

This means that the bankrupt will lose his/her building license.

Because of the real and extreme consequences of insolvency on a building company, company officers, influential persons and individuals, insolvency is a great way to enforce a registered adjudication decision for construction debts.

Adjudication Application – Moving Forward

If you have a debt relating to construction work and you are within the relevant timeframe, then you may be able to take advantage of the payment claim and adjudication provisions of the BIFA.

We strongly advise seeking legal advice before doing so.

If you need to make an adjudication application then time is of the essence.  Contact a building and construction debt recovery lawyer

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Construction Debts Adjudication Application FAQ

The below are some frequently asked question in relation to payment claims and adjudication application under the BIFA in Queensland.

What is Adjudication in the Building and Construction Industry?

An adjudication is a way of resolving debt disputes in the building and construction industry quickly and cost-effectively, without the need for a determination to be made in a Court.

From service of a payment claim to receiving an adjudication decision, the process can take around 10 weeks, compared to a Court which may take years.

An adjudication in the building and construction industry is a creature of the Building Industry Fairness (Security of Payment) Act 2017 (Qld).

See the QBCC’s website for more information on what adjudication is.

How to Apply for an Adjudication Application?

To apply for an adjudication, you must:

1. Give a valid payment claim; and
2. Not be given a payment schedule; or be given a payment schedule but either it is in an amount less than the claim, or the respondent does not pay the scheduled amount by the due date.

These are the prerequisites for making a BIFA adjudication application.

What is the Approved Form for Adjudication Application?

The adjudication application form is QBCC Form S79

Who can Apply for Adjudication?

A person/company can apply for an adjudication if they have satisfied the below criteria:

1. They have a written or oral construction contract;
2. They have done construction work or provided related goods and services;
3. They have given an eligible payment claim (an invoice) to the other party;
4. They have not be given a payment schedule; or be given a payment schedule but either it is in an amount less than the claim, or the respondent does not pay the scheduled amount by the due date; and
5. They have complied with the time requirements of BIFA.

How do you Deliver an Adjudication Application?

An adjudication application must be delivered to the registrar by either:

1. Completing the form online; or
2. Completing the Form S79 and taking it to a service centre by no later than 4:30pm; or
3. Posting it to GPO Box 5099, Brisbane QLD 4011.

You must give a copy of the adjudication application and supporting submissions and documents to the respondent. This should be done as soon as possible after the application is delivered.  This can be done by delivering it to them, posting it to them, or emailing it to them.

When does an Adjudication Application not Apply?

The adjudication process does not apply in the following circumstances:

1. When the construction contract is part of a loan agreement, guarantee or insurance;
2. When the construction contract is for domestic building work with the owner;
3. When construction work or goods and services is for a job outside of Queensland;
4. When work is not calculated by reference to the value of work completed;
5. When you have given a notice of claim for the same work or related goods and services.

What do I do Following the Adjudication Decision?

Following the adjudication decision, a claimant must demand payment.  If the respondent does not pay the adjudicated amount within 5 days, then the claimant is issued with an adjudication certificate.

Upon successful registration of the adjudication certificate in the Court, the adjudication certificate becomes enforceable as if it were a judgment of that Court.

You are then free to start enforcement proceedings.

How do I get paid under the BIFA?

Firstly, a claimant must issue a payment claim.  The respondent must then provide a payment schedule to the claimant agreeing to pay all, some, or none of the claim – and their reasons why.

A claimant is then able to commence legal action or make an adjudication application.

Upon successfully obtaining an adjudication decision, the claimant must register the adjudication certificate in the Court and commence enforcement proceedings.

What is the Timing of the Payment Claim before Adjudication Application?

If the payment claim is not related to a final payment, then the claim must be served the later of:

1. The time allowed for in the construction contract; or
2. Six (6) months after the work to which the claim relates was last carried out; or
3. The related goods and services to which the claim relates were last supplied.

If the payment claim is related to a final payment, then the claim must be served the later of

1. The time allowed for in the construction contract; or
2. Twenty-eight (28) days after the end of the last defects liability period; or
3. Six (6) months after the completion of the works; or
4. Six (6) months after the complete supply of related goods and services to be supplied under the construction contract.

What is the Timing of the Payment Schedule before Adjudication Application?

If given a payment claim, a respondent must respond to the payment claim by giving the claimant a payment schedule within whichever of the following periods ends first:

1. The period, if any, within which the respondent must give the payment schedule under the relevant construction contract;
2. 15 business days after the payment claim is given to the respondent.

See section 76 of BIFA for more.

What is the Timing of an Adjudication Application?

An adjudication application must be made within the following timeframes:

1. For an application for failure to give a payment schedule and pay the full amount stated in the payment claim—30 business days after; the day of the due date for the progress payment to which the claim relates; or the last day the respondent could have given the payment schedule under section 76 ; or
2. For an application relating to a failure to pay the full amount stated in the payment schedule—20 business days after the due date for the progress payment to which the claim relates; or
3. For an application relating to the amount stated in the payment schedule being less than the amount stated in the payment claim—30 business days after the claimant receives the payment schedule;

See section 79 of BIFA for more.

What is the Timing of an Adjudication Application Response?

If responding to a standard payment claim, the respondent must give the adjudicator the adjudication response within the later of the following periods to end—

1. 10 business days after receiving a copy of the adjudication application;
2. 7 business days after receiving notice of the adjudicator’s acceptance of the adjudication application.

If responding to a complex payment claim, the respondent must give the adjudicator the adjudication response within the later of the following to end—

1. 15 business days after receiving a copy of the adjudication application;
2. 12 business days after receiving notice of the adjudicator’s acceptance of the adjudication application.

See section 83 of BIFA for more.

How long does an Adjudication Decision take?

An adjudicator must decide an adjudication application no later than:

1. For a standard payment claim—10 business days after the response date; or
2. For a complex payment claim—15 business days after the response date.

Although, an adjudicator can request more time if they are unable to decide the adjudication within the 10 or 15 business days.

See section 85 of BIFA for more.

Useful Adjudication Application Links

QBCC Adjudication Application Guide – HERE

Decision Search – HERE

Adjudication Monthly Statistical Reports – HERE

QBCC Protecting Your Payment Rights – HERE

If you need to make an adjudication application then time is of the essence.  Contact a building and construction debt recovery lawyer

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GET A FREE FEE ESTIMATE TODAY

OR CALL: 1300 545 133 FOR A PHONE CONSULTATION