Due Date for Payment
The “Due Date for Payment” is a critical date in the Security of Payment adjudication process but is often misunderstood and non-compliance can lead to invalid applications being made.
In most states the Acts refer to the due date for payment as specified in the Contract and for either party this should be the primary guidance of how to calculate the due date of payment.
An example may be that the Contract states that the Claimant may put a claim for payment on the 23rd of June to be paid on the last day of the following month. The due date for payment could then be viewed as being the 31st of July.
If the Contract is silent because it is not expressly written or there is a verbal agreement the Act(s) specify a default due date for payment of 10 business days from the date the Respondent receives the Payment Claim (not the invoices attached to the Payment Claim which may be dated earlier).
Additionally the Queensland Building Services Authority Act 1991 (Section 67U refers) voids any provision under a “construction management trade contract or subcontract” (as defined by the QBSA Act) which has payment terms, of a progress payment, later than 25 business days after the submission of a payment claim.
If you unsure of what due date for payment is applicable then it is advisable to seek legal / professional assistance prior to making an Adjudication Application.
