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The respondent’s statutory obligation is to pay any adjudicated amount. This can’t be varied by inconsistent contract provisions.

If the respondent fails to pay the whole or any part of the adjudicated amount by the relevant date, the claimant may:

  • Ask Adjudicate Today to provide an adjudication certificate; and/or

  • Suspend future work or the supply of goods or services by giving 2 business days notice of such intention.

The "relevant date" is 5 business days after the respondent receives the adjudication decision, or such later date as the adjudicator may determine.

The adjudication certificate is the culmination of the adjudication process.  It is the method by which the claimant enforces the decision, including payment of any interest and adjudication fees.  Most adjudicators will award interest to successful claimants and also determine that the adjudication fees (either in whole or part) should be paid by the respondent.

The claimant can file the adjudication certificate in the appropriate court as a judgement debt.  The claimant must support the certificate with an affidavit stating that the whole or a part of the adjudicated amount (including interest and adjudication fees) has not been paid at the time the certificate is filed.  The judgement debt is then enforceable in the same way as any court judgement, without time consuming and often expensive court hearings of the matters in dispute.

There are serious implications for a BSA licensed builder or trade contractor who has a judgement debt issued against them as a result of not complying with an adjudication decision. The Queensland Building Services Authority Act 1999 makes it an offence for a contractor not to inform Building Services Authority (BSA) within 14 days, if they have not paid a judgement debt in full by 28 days after judgement is entered or whatever longer period is allowed by the court for payment.

Ten points are allocated for unsatisfied judgement debts.  However demerit points allocated for non-payment of judgement debts will be removed as soon as BSA is satisfied that the debt has been paid. A contractor who accumulates 30 demerit points (3 unsatisfied judgement debts) over a three-year period will face an industry ban for three years.  If they return to the industry and again, within 10 years of the first ban, accumulate 30 demerit points over a three-year period, they will face an industry ban for life.

Please move to the next step on the "Payment Schedule served flowchart" being "Claimant may suspend work on giving 2 business days notice".

Click: Payment Schedule NOT Served flowchart

or

Click: Scrap the chart, go to the next step

 


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