|
For contracts let after 30 March 2007, Victoria now has a
radically new method for recovering payment for work done and
goods and services provided. This web site explains who can
recover payments using adjudication and how to go about it.
In
the past a claimant usually had to complete the project before
being able to force payment and, even then, it usually involved
proving a case in court or arbitration. Now a claimant can
compel progress payments at regular intervals and can suspend
work if a payment is not made on time. But to take advantage of
the new law a claimant must be quick. Delay will mean that the
claimant is only left with the old system.
The
new law provides incentives for subcontractors, contractors,
people supplying or hiring plant or materials for construction
work and consultants to recover prompt payment. It is designed
to expedite cash flow and minimise the cost and delay in
resolving disputes. The cost of adjudication is usually payable
by the party who wrongfully withholds payment. Pay when paid
clauses are outlawed and if payment is made late, payment of
interest is compulsory.
Since the law is new, make sure that all your staff, your
accountant and any legal advisers are aware of it. If there is a
dispute over payment, the law now provides for compulsory rapid
adjudication of the dispute. That process is usually entirely in
writing. There is no hearing to attend, no examination or
cross-examination and none of the costly and time consuming
processes of a court.
The
first time you use the new law to recover money the process may
seem complicated but soon you will be using it regularly and you
will find it straight forward and much easier than going to
court or arbitration. That does not mean that you might not need
the assistance of a lawyer but the cost will be much less than
if you try to sue for recovery of money without using the Act.
Adjudicate Today is an authorised nominating authority under the
Building and Construction Industry Security of Payment Act
2002 Vic. Adjudicate Today’s role is to train and accredit
suitably skilled people to be adjudicators. When an adjudication
application is lodged with Adjudicate Today, Adjudicate Today
refers it to a suitable adjudicator who within 10 business days
decides the payment, if any, that the claimant is entitled to.
Then, if the payment is not made on time, Adjudicate Today
issues an adjudication certificate that can be filed in court as
a judgment.
Adjudicate Today must remain completely neutral. Consequently,
this web site contains information for both parties to a
dispute. The information is based upon the Act and Regulation at
30 March 2007. For contracts let before that date adjudication
is available but the procedure, times and outcomes are
different.
|
