The Contract

In general the various Security of Payment adjudication acts do not override contract conditions other than that specified in the legislation.

However, there are some provisions that do so on which the respective Government agencies have offered guidance. Links to the Government sites can be accessed by viewing the information provided here.

To ensure your works proceed without nasty surprises it is good practice to provide a quotation before commencing outlining the basic requirements of the Acts including but not necessarily limited to:

  • a description of the works and its valuation including rates and on-costs for material (if applicable)
  • dates when you intend to claim for works (eg weekly, fortnightly, monthly until all outstanding payments have been made)
  • due dates for payment after invoices (eg 7 days, 10 business days, 30 days)
  • interest rates on overdue payments (eg 10%pa claimable on and from the last day of each month)

You should also confirm variations in writing as soon as they occur to avoid disputes later on.

Be careful to not compromise your quotation terms and conditions by agreeing to an alternative contract after commencing the works.

The person who compiles your Adjudication Application or Adjudication Response may ask you to consider providing evidence (or contrary evidence) of a Contract between the parties for the works, goods and services in relation to the Payment Claim and the Adjudication Application.

This may be a written contract/agreement or any other document which may show that there was (or was not) a contractual relationship for the works, goods and services being claimed such as:

  • Standard Form Contract;
  • Standing Orders;
  • Purchase orders;
  • Letter of intent;
  • Dockets;
  • Completion certificates;
  • Inspection reports;
  • photographs,
  • correspondence;
  • statutory declarations.

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