Functions of ANAs and Adjudicators Under Security of Payment Legislation

By Dr Samer Skaik

In the construction industry, the role of Authorised Nominating Authorities (ANAs) and adjudicators is pivotal in ensuring the timely and fair resolution of payment disputes. Let’s explore the key functions and powers of ANAs and adjudicators under the Security of Payment legislation in NSW and other jurisdictions that follow its model.

Authorised Nominating Authorities (ANAs)

The ANAs are responsible for overseeing the selection, training, and monitoring of adjudicators, ensuring compliance with the Security of Payment (SOP) Act. The key functions of ANAs include:

  • Core Competencies: ANAs determine the necessary core competencies of adjudicators required to undertake the adjudication process under the SOP Act, ensuring their proficiency in handling unique adjudication determinations.
  • Selection and Training: ANAs select, train, and monitor adjudicator performance and compliance on an ongoing basis, maintaining a suitable quality system to support consistent and reliable adjudicator selection, training, and monitoring.
  • Quality Assurance: ANAs monitor and report instances of non-compliance and unsatisfactory adjudicator performance, implementing remediation actions to prevent reoccurrence and ensure high standards of expertise.
  • Conflict of Interest: ANAs ensure that adjudicators nominated possess the core competencies, have undergone adequate training related to the SOP Act, and address any perception of conflict of interest before nomination.

Adjudicator’s Powers and Functions

Adjudicators, while entrusted with limited powers, play a crucial role in determining payment disputes. Here’s a closer look at their powers and functions:

  • Determining Adjudicated Amounts: Adjudicators are confined to determining the amount of the progress payment to be paid by the respondent to the claimant, the date upon which any such amount became or becomes payable, the rate of interest on the adjudicated amount, and the apportionment of adjudication fees.
  • Consideration of Submissions: Adjudicators strictly consider the provisions of the SOP Act, the construction contract, payment claim and schedule, along with any supporting submissions and results of inspections. They are not allowed to rely on arguments not advanced by either party without affording them an opportunity for natural justice.
  • Correction of Determination: Adjudicators have the power to correct determinations in the event of clerical mistakes, miscalculations, or defects of form, ensuring the accuracy and integrity of their determinations.


The functions of ANAs and adjudicators under the Security of Payment legislation play a pivotal role in ensuring the effective and fair resolution of payment disputes within the construction industry. ANAs oversee the training and monitoring of adjudicators to maintain high standards of expertise, while adjudicators, within their limited powers, are responsible for determining the adjudicated amounts and maintaining fairness and accuracy in their decisions.

By understanding and upholding the functions and powers of ANAs and adjudicators, the construction industry can ensure the integrity and effectiveness of the adjudication process, ultimately contributing to the fair and efficient resolution of payment disputes.

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