The purpose of the Act and the adjudication process it introduced is to provide a quick and interim resolution to a dispute and ensure that payment for services rendered is promptly made and not unreasonably withheld.

The Act facilitates cash flow down the chain and is a powerful tool for “smaller” parties seeking to recover payment from a “bigger” party in the contractual relationship – i.e subcontractor seeking to recover from a principal.

The dispute is fast tracked through a process known as adjudication which results in a quicker outcome than the Court processes. The adjudicator’s determination is interim, and the merits of the determination can be challenged through the courts. However, a successful party is immediately entitled to the benefits of the adjudicator’s determination notwithstanding the possibility of a challenge in Court.

The Act applies to any construction contract whether written or oral or partly written and partly oral. The contract must involve the carrying out of construction works or the supply of goods or services related to construction works.

HomeBuilding Pty Ltd (formerly known as Hammond & Simonds Pty Ltd ABN 61 162 746 929) v Cappello & Anor [2023] NSWDC 338.

If you require assistance as a claimant or respondent under the Building and Construction Security of Payment Act, the Commercial Litigation and Crime Team at Adams & Partners Lawyers can help you. Contact us on (02) 4721 6200.

Written by Malik Anne

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