Security of Payment - Time Limits

Counting of days - the day a document is served, provided or claim is made, (NSW Parliamentary Counsel appear incapable of consistent wording the Act) ie served, is not counted. That is, the day of service is day zero and the next business day becomes day 1. Also the working days between Christmas and New Years Day are not counted as business days.

Time to serve a payment claim - within 12 months of the last work done on the job or in the period determined under the contract, whichever is the longer.

Time to serve a payment schedule - Ten business days after service of the payment claim.

Time to lodge an adjudication application

Time to lodge an adjudication application where a payment schedule has been served in response to a payment claim - within 10 business days of the date of service of the payment schedule.

Time to lodge an adjudication application where a payment schedule has been served in response to a payment claim but the respondent fails to pay the whole or any part of the scheduled amount to the claimant by the due date for payment -  within the period of 20 business days immediately following the due date for payment.

Time to lodge a section 17(2) notice where no payment schedule has been served in response to a payment claim - within the period of 20 business days immediately following the due date for payment, of the claimant’s intention to apply for adjudication of the payment claim.  NB a section 17(2) notice served prematurely is invalid.

Due date for payment (see section 11):

* Where a head contractor has served a payment claim on a principal, the due date for payment is the date occurring 15 business days after a payment claim is served or an earlier date as provided in accordance with the terms of the contract

* Where a subcontractor has served a payment claim on a head contractor other than under a construction contract that is connected with an exempt residential construction contract, the due date for payment is the date occurring 30 business days after a payment claim is served an earlier date as provided in accordance with the terms of the contract.

* Where a subcontractor has served a payment claim on a head contractor under a construction contract that is connected with an exempt residential construction contract becomes due and payable on the date on which the payment becomes due and payable in accordance with the terms of the contract, or if the contract makes no express provision with respect to the matter, on the date occurring 10 business days after a payment claim is served.

Time to respond to a section 17(2) notice with a payment schedule - five business days from service of the notice.

Time to lodge an adjudication application in response to a payment schedule served in response to a section 17(2) notice - 10 business days from the end of the five business days the respondent had in which to serve the payment schedule. Note the difference with this situation and that where the payment schedule was served in response to the payment claim where the adjudication application must be served within ten business days of service of the payment schedule.

Time when the adjudicator must accept the adjudication - 4 business days after application is made.

Time to serve an adjudication response - five business days after the service of the adjudication application or two days after the service of the adjudicator’s acceptance of the adjudication, whichever is the later.

Time for an adjudicator to lodge his adjudication determination with the authorised nominating authority - ten business days from acceptance unless the parties have unanimously agreed to extend the time.

Time after payment of scheduled amount when a suspension notice must be lifted - 3 business days.

Time in which the claimant may lodge new adjudication application - 5 business days after the expiry of the time in which the adjudicator must accept the adjudication.