What is a reference date and does this date comply with the Act?
If the construction contract provides a date for making a progress claim then that date is the reference date. The payment claim need not be actually made on that date, it may be made at a later time but the entitlements can only be calculated to the reference date.
If there is no date stipulated in the contract, the reference date is the last day of the month preceding the date of the payment claim. Therefore a payment claim made in July 2009 can include all work up to the end of June 2009. Claiming for any work performed in July 2009 must await the passage of the next reference date on the last day of that month ie the claim is made in early August.
However, if an invoice was served that did not include the notice that it is a payment claim under the Act, than the claimant remains entitled to make a payment claim under the Act for the same reference date.
Monies not paid in respect of a previous payment claim can be included in the next payment claim.
There are two additional limitations:
| 1. | Only one progress claim can be made in respect of one reference date for the making of a claim. This means multiple payment claims can't be made in relation to the same reference date. However a payment claim which was previously submitted and not paid in whole or part, can be resubmitted as part of a new payment claim in respect of a later reference date provided that additional work has been undertaken. Payment claims, the subject of previous adjudication decisions and valued at $Nil, are excluded and can't be resubmitted. |
| 2. |
Unless the construction contract provides for a longer period, a payment claim must be made within 12 months after the construction work to which the claim relates was last carried out or the related goods and services to which the claim relates was last supplied. It is not uncommon for construction contracts to provide for longer periods. One example is the contracts which provide for 12 months defects liability period and that the final claim for payment should be made within 28 days after the end of the defects liability period. In this example, the contract has extended the period for the making of the final payment claim from 12 months to 12 months plus 28 days. A contract can't reduce the 12 month period allowed by the Act. |
Once the reference date has been identified, a payment claim can be prepared and served for work performed to that date.
Please move to the next step on the "Payment Schedule served flowchart" being "Claimant prepares and serves Payment Claim".
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