Security of Payment Act

The ACT Building and Construction Industry (Security of Payment) Act 2009 establishes an adjudication process so that people who carry out construction work, or supply goods and services can receive timely payment.

Under this informal, inexpensive and quick process, an authorised nominating authority (ANA) appoints an adjudicator to hear disputes about account payments. In this way, parties can avoid court litigation.

The Act applies to construction contracts entered into from July 1, 2010. 

Authorised nominating authorities

The following organisations have been authorised as nominating authorities:

Name

Phone number
Able Adjudication Pty Ltd  1300 922 303
Adjudicate Today Pty Ltd 1300 760 297
Australian Solutions Centre Pty Ltd 1300 722 624
Australian Building & Construction Dispute Resolution Service Pty Ltd trading as ABC Dispute Resolution Service and ABC DRS 1300 857 383
Institute of Arbitrators and Mediators Australia 02 6282 0234
RICS Dispute Resolution Service 1300 953 459

The adjudication process

Under the Building and Construction Industry (Security of Payment) Act authorised nominating authorities can receive adjudication applications, nominate adjudicators and issue adjudication certificates.

Independent adjudicators with relevant expertise adjudicate in a tight timeframe. If the adjudicator’s decision is, in whole or part, in favour of the applicant, the respondent has to pay the applicant an amount determined by the adjudicator. These decisions are enforceable as a judgement debt through the courts.

The adjudication process does not extinguish a party’s ordinary contractual rights to seek a final resolution of a payment dispute by a court or tribunal.

The adjudication process does not apply to construction contracts that form part of a loan agreement or for residential building work if a resident owner is a party to the contract, except where the work is done under an owner-builder licence. ‘Pay when paid’ provisions in a contract have no effect and do not prevent a person’s rights under the Act to seek a payment.

See also:

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