Analysis of adjudication determinations made under security of payment legislation in New South Wales
By: UHER, Thomas E.
Contributor(s): BRAND, Michael C.
Material type: ArticlePublisher: Amsterdam : Elsevier, August 2005Subject(s): Statutory adjudication | Reivindicação | Gestão de ContratosInternational Journal of Project Management 23, 6, p. 474-482 Abstract: The Building and Construction Industry Security of Payment Act NSW 1999 (the Act) is a unique form of statutory regulation for the building and construction industry, which gives virtually all industry participants a statutory right to, and a means of recovering, payments for work done under a construction contract. The research aim is to examine trends in adjudication determinations under the Act, in particular, the pattern of payment claims made by claimants; the level of compliance of respondents with the adjudication process; the reasons given by respondents for paying less than the claimed amount; the degree of success of claimants in an adjudication; the effectiveness of the Act in defining due date for payment and interest on the unpaid portion of claims; and the emerging trend in regard to payment of adjudication fees. The research reveals that: no clear pattern of payment claims made by the main claimant types exists; there remains a considerable level of non-compliance amongst respondents; the main reasons given by respondents are either unsubstantiated or misconceived, and counterproductive; the degree of success of claimants in the adjudication process is high; and the inclusion of default statutory provisions in relation to defining the due date for payment and interest on the unpaid portion of claims is justified. Finally, the results also show that if a claimant is wholly successful at adjudication, an adjudicator will generally require the respondent pay whole amount of the adjudication fees.The Building and Construction Industry Security of Payment Act NSW 1999 (the Act) is a unique form of statutory regulation for the building and construction industry, which gives virtually all industry participants a statutory right to, and a means of recovering, payments for work done under a construction contract. The research aim is to examine trends in adjudication determinations under the Act, in particular, the pattern of payment claims made by claimants; the level of compliance of respondents with the adjudication process; the reasons given by respondents for paying less than the claimed amount; the degree of success of claimants in an adjudication; the effectiveness of the Act in defining due date for payment and interest on the unpaid portion of claims; and the emerging trend in regard to payment of adjudication fees. The research reveals that: no clear pattern of payment claims made by the main claimant types exists; there remains a considerable level of non-compliance amongst respondents; the main reasons given by respondents are either unsubstantiated or misconceived, and counterproductive; the degree of success of claimants in the adjudication process is high; and the inclusion of default statutory provisions in relation to defining the due date for payment and interest on the unpaid portion of claims is justified. Finally, the results also show that if a claimant is wholly successful at adjudication, an adjudicator will generally require the respondent pay whole amount of the adjudication fees.
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