Adjudication Process Across Australia: How Construction Payment Disputes Get Decided

What it is

Adjudication is a statutory fast-track decision process that lets a builder, subcontractor or supplier in the construction chain get a binding decision on what they are owed within weeks rather than years. Every Australian state and territory has its own Security of Payment (SoP) legislation that sets up the same broad structure, but the time bars, forms, nominating authorities and quirks differ. The five mainland states most TradeForm users operate in are NSW, VIC, QLD, WA and SA. This entry maps the common process and flags the key state differences.

Adjudication is not arbitration and is not court. The decision is interim. A respondent who loses can still take the merits to court later, but in the meantime they have to pay. This was the policy intent of all the SoP Acts. Keep money flowing down the chain so the construction industry does not strangle itself with non-payment.

Step 1: Serve a payment claim

The claimant (the party owed money) serves a payment claim on the respondent (the party that engaged them). The claim must:

• identify the construction work or related goods and services to which it relates
• state the amount claimed (the "claimed amount")
• state that it is made under the relevant Act

In NSW the claim must be endorsed as being made under the Building and Construction Industry Security of Payment Act 1999 (NSW). VIC requires a similar endorsement under the 2002 Act. QLD operates under the Building Industry Fairness (Security of Payment) Act 2017 (Qld), which prescribes specific approved forms. WA now operates under the Building and Construction Industry (Security of Payment) Act 2021 (WA), which replaced the old Construction Contracts Act 2004 (WA) and moved WA to the East Coast model. SA uses the Building and Construction Industry Security of Payment Act 2009 (SA).

Timing of the claim is governed by the contract or, where the contract is silent, by the relevant Act. Reference dates were abolished in NSW by the 2018 amendments, so claims can now be served on or after the last day of each month.

Step 2: Respondent serves a payment schedule

The respondent has 10 business days (or any shorter period the contract specifies) to serve a payment schedule. The schedule must:

• identify the payment claim
• state the amount the respondent proposes to pay (the "scheduled amount")
• give reasons for any difference, including reasons for withholding payment

If the respondent fails to serve a payment schedule in time, the consequences are severe. In NSW under section 14(4) of the 1999 Act, the respondent becomes liable for the full claimed amount on the due date and cannot raise a defence based on the contract or a cross-claim in any later court action.

Step 3: Lodge the adjudication application

If the scheduled amount is less than the claimed amount, or the respondent failed to schedule or pay, the claimant can apply for adjudication through an Authorised Nominating Authority (ANA). Time bars are strict and jurisdictional. Miss them, lose the right.

NSW time bars (section 17)

• 10 business days after receiving a payment schedule that disputes the claim
• 20 business days after the due date for payment where the respondent neither paid nor scheduled
• 10 business days after the end of the 5-business-day notice window where a payment schedule was served but the respondent then failed to pay

VIC, QLD, SA and WA

Each state sets its own time bar. VIC under section 18 of the 2002 Act broadly mirrors NSW but has different notice mechanics. QLD under the BIF Act sets 30 business days after the due date in some pathways. SA closely follows the NSW model. WA under the 2021 Act now uses business-day windows aligned with the East Coast template, which is a major change from the old WA CCA regime.

What the application contains

• copy of the payment claim and payment schedule (if any)
• submissions on why the adjudicated amount should be the claimed amount
• supporting evidence such as invoices, variation approvals and site records
• the prescribed ANA fee

Step 4: Adjudicator determines

The ANA nominates an adjudicator. The respondent typically has 5 business days to lodge an adjudication response, though in some states the respondent who failed to serve a payment schedule loses the right to respond at all. The adjudicator then determines the adjudicated amount and the date it became payable. Statutory determination windows are short. NSW allows 10 business days from acceptance, extendable with consent.

The determination is not a court judgment but it is binding for the purposes of the Act. The reasoning is often brief because of the time pressure.

Step 5: Enforcement

If the respondent does not pay the adjudicated amount by the due date, the claimant can:

• obtain an adjudication certificate from the ANA
• file the certificate as a judgment for a debt in a court of competent jurisdiction
• suspend work under the contract after giving the required notice (typically 2 business days)
• pursue payment withholding requests against principals further up the chain in jurisdictions that allow them

The respondent's challenge options are narrow. Judicial review on jurisdictional error grounds is available but the courts have been reluctant to disturb adjudications on the merits.

Key state differences at a glance

• NSW abolished reference dates in 2018; claims can be served monthly
• VIC excludes domestic building work where the homeowner is the principal
• QLD uses prescribed forms and a chapter 3 BIF Act process
• WA moved to the East Coast model on 1 August 2022
• SA's 2009 Act applies to construction contracts across the state

Treat these dates and procedures as a guide. Always check the current text of the relevant Act on the state legislation register before serving a claim or applying for adjudication, because amendments are frequent and time bars are unforgiving.