Security of Payment Act Flowchart

Claimant serves
payment claim

Supply contract: Contract terms (60d max) or 30d after invoice (claim) is served

Construction contract:
1
Contract terms (21d max) or 7d after claim is served
Stipulated
date for
payment
response

Does the
respondent
issue a payment
response?

No

No payment
response

Does the
claimant dispute
the payment
response?

Full, partial or no
payment proposed

Yes

Dispute
settlement
period

No

Construction contract:
Contract terms (35d max)
1
or 14d after stipulated
date for payment response
or tax invoice (if applicable)
is provided

Yes

7d
Construction contract:
1
Contract terms (35d max) or 14d after stipulated date for
payment response or tax invoice (if applicable) is provided

Yes

Is the dispute
resolved?

No

7d (max)
after dispute settlement period

Claimant issues
notice of intention to
apply for adjudication
Claimant applies to
ANB for adjudication.
ANB copies to
2
respondent

7d (max)
ANB appoints adjudicator
and confirms appointment
2
with all parties

Payment
due date

7d (max)
after payment due date

No

Does the
respondent pay
accordingly?

Respondent receives copy of

adjudication application

Yes

7d (max)
Respondent serves
adjudication response to ANB.
2
ANB copies to claimant

Process under the Act

completed

Adjudication
commences
14d (max)
Adjudication
2
determination
7d after adjudication determination

Adjudicated
amount due
date
7d (max) after
adjudication
determination

7d (max)
ANB appoints
adjudicator(s) and
confirms appointment

Respondent applies to Yes

ANB for review. ANB
2
copies to claimant

Does
respondent
want to apply
3
for review ?

Yes

Has adjudicated
amount been
paid?

14d (max)
No

Review
2
determination

No

7d after review determination

Process under the Act
completed

Adjudicated
amount due
date

Does claimant
pay the
adjudicated
amount?
No

Yes

Does
respondent pay
the adjudicated
amount?

No

Claimant issues
notice to suspend
2
work / service

Yes
7d after suspension notice
Claimant suspends
work / service

Respondent recovers
from claimant under
contractual provisions
or common law

Respondent makes
payment to the
claimant

Notes:
i)
ANB

Authorised Nominating Body

ii)

Calendar days (excluding official public holidays)

iii)

max

Maximum allowable period

iv)

Default days if not stated in contract

Claimant resumes
work / service if he
has suspended

v)

Principal (if known) and owner to be notified

vi)

Respondent may apply for adjudication review only if the

difference between the response amount and adjudicated
amount is large.

Process under the Act

completed

vii)

Other consequences of non-payment of adjudicated amount

under the Act include the claimants right to exercise lien and
the enforcement of adjudication determination as a judgment
debt.

3d (max)

* Important: The flowchart does not cover all situations and details of the Security of Payment Act. For full appreciation of the rights and obligations, please consult the Act or obtain legal advice.