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Definitions as laid out in the Building and Construction Industry Payments Act 2004 of related terminology to the Act.AdjudicatorIn relation to an adjudication application, an adjudicator is appointed under this Act to decide the application. Authorised Nominating AuthorityAn Authorised Nominating Authority is an organisation registered under the Building and Construction Industry Payments Act 2004 to nominate 'Adjudicators' to decide Adjudication Applications. Adjudication ApplicationThe time frames for lodging an Adjudication Application with an Authorised Nominating Authority are triggered by the Respondent’s service of a Payment Schedule (if any) on the Claimant and subsequent failure to pay all or part of the claimed amount. If the Respondent serves a Payment Schedule but the scheduled amount is less than the claimed amount then the Claimant may lodge an adjudication application within 10 business days of receipt of the Payment Schedule. If the Respondent serves a Payment Schedule but fails to pay the full or part of the claimed amount by the due date for payment, Building & Construction Payment Solutions team prepares and lodges an Adjudication Application for the Claimant within 20 business days after the due date for payment. If the Respondent fails to serve a Payment Schedule and fails to pay the claimed amount in full or part by the due date for payment Building & Construction Payment Solutions team prepares and lodges an Adjudication Application for the Claimant within 10 business days after the end of the 5 business days provided by the “Notice 21(2)”. The Building & Construction Payment Solutions team prepares and serves the Adjudication Application on behalf of the Claimant on the Respondent and the Authorised Nominating Authority then nominates and appoints an adjudicator to decide the adjudication. When an Adjudicator accepts an Adjudication Application the Claimant and Respondent are notified of the Adjudicator’s acceptance. If the Respondent has served a valid Payment Schedule on the Claimant within time then the Respondent may lodge an Adjudication response with the adjudicator within the later of 5 business days of receipt of the Adjudication Application from the Claimant or 2 business days from the Adjudicator’s notice of acceptance of the application. Adjudication DecisionThe Adjudicator has 10 business days from receipt of the Adjudication Response or from when the Adjudicator ought to have received the Adjudication Response to decide whether the Claimant is entitled to be paid a progress payment by the Respondent and if so the amount due to the Claimant. The Adjudicator may also decide the rate of interest payable on the adjudicated amount (if any) and the apportionment of the Adjudicator’s fees to be paid by the Claimant and the Respondent. If the Adjudicator decides that the Claimant is entitled to a progress payment (“adjudicated amount”) from the Respondent then the Respondent has 5 business days from receipt of the Adjudication decision or a later date prescribed by the Adjudicator to pay the full adjudicated amount to the Claimant. Adjudication CertificateIf the Respondent fails to pay the Claimant the full adjudicated amount within the aforementioned time frames then the Claimant is entitled to request an Adjudication Certificate from the Authorised Nominating Authority. The Claimant may then lodge an affidavit of debt stating that the Claimant has not been paid the whole or part of the adjudicated amount from the Respondent with the Adjudication Certificate with any court of competent jurisdiction. ClaimantA person who is or who claims to be entitled to a progress payment. ContractorA individual or firm that contracts to perfom works and or supply construction related goods, services and labour at an agreed rate..
Failure to pay all or some of the scheduled amountIf the Claimant is happy with the Respondent’s scheduled amount then the Respondent has until the due date for payment to pay the scheduled amount to the Claimant. However, if the Respondent fails to pay the scheduled amount by the due date the Building & Construction Payment Solutions team prepares submissions for an Adjudication Application on behalf of 'Claimant' and lodges the application with an Authorised Nominating Authority (ANA).
Payment ClaimThe Adjudication Process is instigated when the Building & Construction Payment Solutions team prepares and serves a valid Payment Claim on your behalf and serves it on the Respondent. The Claimant must be:
Payment ScheduleUpon receipt of a Payment Claim, the Respondent has 10 business days to serve a Payment Schedule on the Claimant. A valid Payment Schedule must identify the Payment Claim to which it relates, state the amount (“scheduled amount”) the Respondent proposes to pay (if any) and if the scheduled amount is less than the amount claimed, the Respondent’s reason(s) for withholding the claimed amount.
No Payment ScheduleIf the Respondent fails to either serve a Payment Schedule or pay the claimed amount within 10 business days then the Respondent is legally responsible to pay the claimed amount by the due date for payment the Claimant has the option to:
The Claimant's notice (“Notice 21(1)”) must state the Respondent has 5 business days from the receipt of the notice to serve a Payment Schedule and state that it is made under the BCIPA. The Claimant may also give the Respondent notice of its intention to suspend work or supply of goods and services under the contract.
RespondentA person who under a construction contract concerned, is or may be liable to make payment. You can download the Building and Construction Industry Payment Act 2004 for more detailed information.
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