The Mechanism of the Australian Statutory Adjudication in a Nutshell
By Samer Skaik
Many construction practitioners in Australia face difficulties in understanding the mechanism of the Statutory Adjudication and how it differs from a State to another. While it is important to point out that the Australian Acts are different, there are a number of common mechanisms. Typically, a person entitled to a progress payment for carrying out construction work (or supplying related goods and services) had to seek recovery of any unpaid amounts via lengthy legal proceedings in arbitration or court. As such, parliament enacted the Security of Payment (SoP) legislation to protect the rights of such persons and facilitate rapid recovery of due payment. The SoP legislation provides statutory rights enabling quick and inexpensive recovery of progress payment for any subcontractor or supplier performing construction works or supplying related goods and services. To facilitate these rights, the SoP introduced a rapid adjudication process to resolve payments disputes. …
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