Get help getting paid (BCIPA)
Going to adjudication
Please note: The changes to progress payments included in the Building Industry Fairness (Security of Payment) Act 2017 are yet to commence, until then all payment claims should be made in accordance with the Building and Construction Industry Payments Act 2004.
When you reach the stage where you are ready to go to adjudication, you will understand why there is so much emphasis placed on getting the words right on your notices and making sure you stick to the timeframes.
The adjudicator makes a decision based on who has the stronger argument, which in turn is based on the paperwork submitted by both parties.
The adjudicator will only determine:
- the right to a progress payment (if any)
- the date on which it becomes payable
- the rate of interest payable
How is a decision made?
The adjudication decision is based on the following information:
- details from the valid payment claim and payment schedule and any other properly made submissions;
- the construction contract between both parties; and
- the provisions under the relevant Acts: the Building and Construction Industry Payments Act and Part 4A of the Queensland Building and Construction Commission Act (if relevant).
Making an application
If you have completed all the steps by serving a valid payment claim on the respondent and given notice of your intention to apply (if applicable), you are ready for adjudication.
Remember, when you submit your application you can include submissions proving your entitlement to payment. An adjudicator will consider your submissions when making a decision. If there are no submissions, it may be hard for them to make a decision in your favour.
There are two fees payable for having your claim decided. The first fee you pay when you submit your application. The second amount is paid directly to the adjudicator for any work carried out, and expenses incurred, toward making a decision or if you withdraw your application after work has commenced. This fee is also affected by the grade of Adjudicator we consider necessary to assess your claim.
Adjudication application fees
|Claimed amount excluding GST||Application fee|
|If claimed amount is $10,000 or less||$55.40|
|If claimed amount is more than $10,000 but not more than $50,000||
|If claimed amount is more than $50,000 but not more than $100,000||$277.15|
|If claimed amount is more than $100,000 but not more than $250,000||$388.05|
|If claimed amount is more than $250,000 but not more than $500,000||$498.90|
|If claimed amount is more than $500,000 but not more than $750,000||$609.75|
|If claimed amount is more than $750,000 but not more than $1,029,500||$720.65|
|If claimed amount is more than $1,029,500||0.07% of the claimed amount but not more than $5543.60|
Adjudicator fees - How are they allocated?
Both the claimant and respondent have equal responsibility for paying the adjudicator fees. However, their share of the fees is dependent on a range of issues and the adjudicator will consider the following:
- how successful the claimant or respondent has been in their application. For example, if the outcome of the decision was 100% in favour of the claimant, then 100% of the fees will most likely be allocated to the respondent and vice versa;
- whether the claimant or respondent applied for adjudication for an inappropriate reason;
- whether the claimant or respondent acted unreasonably leading up to or during the adjudication;
- the reasons given by the respondent for not making the progress payment;
- whether the respondent included additional reasons for withholding payment in the response, that were not included in the payment schedule;
- whether the application is withdrawn;
- the services provided by the adjudicator in adjudicating the application.
Fees for claims up to $25,000 (exc. GST) - reasonable fees
These fees are dependent on the claimed value, however, it is expected that the adjudicator only charge what they feel is reasonable. In some instances e.g. issues in dispute or sizeable submissions, the fee deemed reasonable may be higher than the maximum fees listed below.
|Claimed amount||Reasonable fee including disbursements|
|If claimed amount is $5,000 or less||$610|
|If claimed amount is more than $5,000 but not more than $15,000||$900|
|If claimed amount is more than $15,000 but not more than $20,000||$1800|
|If claimed amount is more than $20,000 but not more than $25,000||$2000|
Fees for claims over $25,000 (exc. GST) - reasonable hourly rates
The maximum hourly rates we recommend are dependent on the claim value (exc. GST) and the grade of adjudicator deemed suitable under the Act.
|Adjudicator level||Reasonable hourly fee including disbursements|
For respondents during adjudication
You may be able to provide a response which states the reasons why you are not paying the claim. You can do this if you've served a payment schedule but only within certain timeframes. Your response must be in writing and identify the application to which it relates.
- Standard claims (up to $750,000 excl. GST) - If you have served a payment schedule on the claimant, you can make an adjudication response based only on the reasons provided in the payment schedule.
- Complex claims (over $750,000 excl. GST) - You can include any reason for withholding payment, whether or not they were listed on the payment schedule.
For information about when you can provide a response, see Respondent timeframes.
Complex claim - claimants reply
If the application relates to a complex claim for over $750,000 (excluding GST), then the claimant can provide a reply to any new reason raised by the respondent in the response.