Adjudication

The adjudication process in NSW is only applicable to commercial construction contracts, and particular construction work or related goods and services.

• • a party (“the claimant”) that is or may be entitled to a progress payment serves a payment claim on a person (“the respondent”) who is or may be liable to make that payment;
• • the respondent must reply to the payment claim by serving a payment schedule on the claimant stating (with reasons) how much of the payment claim the respondent agrees to pay;
• • if the claimant disputes the respondent's reasons for withholding some or all of the claimed amount or the respondent fails to provide a payment schedule or the respondent fails to pay the scheduled amount the claimant files an adjudication application with an adjudicator chosen from a panel appointed by the Minister;
• • the respondent lodges a response to the adjudication application; and
• • the adjudicator then determines the dispute, usually on the basis only of the written adjudication application and the response.

The adjudicatory decision is enforceable through the courts. There is no appeal but the decision can be reviewed on limited administrative law grounds.

See Adjudication.