Adjudication

Adjudication is the dispute step of the security of payment process. It usually goes like this:

• Payment claim. The claimant serves a payment claim under the Act.

• Payment schedule. The respondent replies with a payment schedule, stating what it will pay and why, within the time the Act allows.

• Application. If the scheduled amount is less than claimed, or not paid, the claimant lodges an adjudication application with an authorised nominating authority within a strict deadline.

• Response. The respondent can lodge an adjudication response, generally limited to the reasons already given in its payment schedule.

• Determination. The adjudicator decides the amount payable, the due date and who pays the adjudicator's fees, usually within a couple of weeks.

The respondent must then pay the adjudicated amount. If it doesn't, the claimant can obtain an adjudication certificate and file it in court as a judgment debt.

Adjudication is available under every Australian security of payment Act, but the rules differ:

• Deadlines. Each Act sets its own time limits for applications and responses, measured in business days and very strictly applied.

• Who appoints the adjudicator. In most states the application goes to an authorised nominating authority. In Queensland, the Queensland Building and Construction Commission's adjudication registry appoints adjudicators.

• Residential work. Some Acts exclude or limit claims against owner-occupiers.

• Recent change. Victoria's Act was substantially amended from 15 April 2026, including changes to what can be claimed and argued.

Because the details vary, check your state's Act for the exact timeframes before you serve or respond to anything.

Not every dispute suits adjudication. It works best for clear payment questions, such as the value of completed work or a priced variation. Complex claims involving large delay costs or extensive expert evidence can be hard to present within the tight timeframes, and some parties choose to resolve those through the contract instead.

Adjudication is quick and interim. It is designed to decide a payment dispute within weeks so cash keeps flowing, and the adjudicator works mostly from the documents. Reasons can be brief.

Arbitration and litigation are slow and final. They decide the parties' rights under the contract after full evidence. A party unhappy with an adjudication can still pursue the dispute through the contract's dispute resolution clause, and any overpayment can be adjusted then. Challenging the determination itself in court is generally limited to jurisdictional error or denial of natural justice.

• Missing a deadline by a day. Late applications and responses are usually invalid. Count business days carefully and allow for public holidays.

• Weak payment schedule reasons. Respondents who give vague reasons often cannot rely on better arguments later.

• Poor evidence. Adjudicators decide on the documents. Programmes, photos, site diaries and correspondence win claims.

• Treating it as the end. Adjudication decides what is payable now. Keep records for the final account.

Overclaiming. Inflated claims can damage the claimant's credibility with the adjudicator and, in some states, affect how fees are split. Claim what you can support with evidence.