Security Of Payment Act Flowcharts
The Security Of Payment Act process is governed by a strict set of time frames which are statutory requirements which must be complied with.
At What Stage Should You Use The Security Of Payment Act Legislation When Making Your Building & Construction Claim ?
It is best to invoke (write on your invoice that it is a claim made under the legislation) the Security Of Payment Act legislation every time you make a claim. Note that you are only permitted to make one claim per month and it must be on or after the correct reference date.
You Should Use The Security Of Payments Act Either; 1) Every Time When Making Your Claim Or, 2) Only When You think There May Be A Dispute About Payment.
As to which of the above options you decide to go with will depend on the contract, and or the individual circumstances.
We recommend that to call us to discuss your situation before deciding.
In any event, there are several key requirements that you need to satisfy in respect of process and timing for your Payment Claim to be valid and successful under the Security Of Payments Act.
Firstly Timing of the Payment Claim
Preparing & serving the Payment Claim
Secondly – Timing of the 2nd Notice
Preparing & serving the “2nd Notice”
Thirdly – Timing of the Payment Schedule
Preparing & serving the Payment Schedule.
Fourthly – Timing of the Notice to Suspend Work
Preparing & serving the Notice to Suspend Work.
Fifthly – Timing of the Adjudication Application
Preparing, lodging, serving, and managing the Adjudication Application.
And it is as simple as that. If you can tick all of the above boxes then you have a valid Payment Claim made under the Security of Payment Act which should be successful.
And remember different limitations apply to each state as to how long you have to claim under Security Of Payment for building & construction debt recovery and collection. Some states are 3 months, some 6 months and some 12 months so call to check with us before it is too late.
Security Of Payment Act Flowcharts for each State are available below: