The Security of Payment processes help businesses in the building industry to receive timely payment for their work, goods and services. NSW was the first state to introduce a Security of Payment Act in 1999. All states now have this type of legislation. Under payment, late payment and and no payment was commonplace before these Acts were introduced. Before 1999, various government reports recommended measures such as encouraging subcontractors to be more selective as to whom they enter into contracts with, prequalifying contractors and assessing the financial position of tenderers. These measures and steps had only limited success in improving the level of payment in the industry. The game changed when the Security of Payment Acts commenced. The injustice of non-payment is directly addressed by the adjudication process of the Acts.
We assist tradies and builders to use the Security of Payment acts in Australia. We specialise in payment disputes in Victoria, Queensland, NSW, ACT , Tasmania and South Australia. The various Security of Payment Acts have helped lots of small operators get paid. We are keen to help carpenters, plumbers, electricians, painters and builders use the Security of Payment Acts correctly and effectively. We are well placed to do this. Our director has over ten years experience as an adjudicator and thoroughly understands how adjudicator's think. We are realistic and thorough. Being a smaller enterprise, we pay careful attention to our clients unique set of circumstances. This gives our clients an important edge over the entity who refuses or delays payment.
What is the Security of Payment Act and adjudication? In a few rough words, it is a legal process that applies to businesses who work and supply goods in the building industry. The unpaid entity submits a formal claim to the person who is, or may be, liable to pay. If no payment, or only part payment, is made, then the unpaid person may make a formal submission to an adjudicator. The person withholding the payment is then usually allowed to respond. In this way, both parties basically get one go at telling their side of the story (in writing). The adjudicator reads the submissions of both sides, makes a decision and prepares a report setting out the reasons. If needed, the adjudicator's decision can be registered in a court as a judgement. The judgement can be used to collect the debt via things like garnishee orders or engaging the local sheriff. The judgement holds until and unless one party takes the dispute fully to court, in which case both parties will start afresh. It usually takes about seven weeks from the payment claim to the judgement. See our adjudication page for a more information.
While our focus is adjudication, we also have experience in mediation and negotiation. We successfully used these alternatives when a client had missed timing requirements for Security of Payment adjudication. We seek to use the approach that best suits the needs of our clients.