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Department of Justice

Security of payment

If you work in the building industry and have a client who is not paying the debt that they owe you, the following steps can be taken:

  1. Serve a Claim for Payment upon the person or business
  2. The person must respond within 10 days for commercial building work, or 20 days for residential building work with a payment schedule
  3. If a Payment Schedule is not received the Builder can get an adjudicator for a ruling
  4. If the adjudicator decides the amount needs to be paid then the debtor must pay it within 5 days unless another date is set by the adjudicator
  5. If the amount is not paid by the due date then the builder can ask the named authority for an adjudication certificate
  6. The builder takes the adjudication certificate to a court registry to be enforced as a judgement debt
  7. The builder can also serve notice on the debtor to say they are stopping work on the building work.

Claims

Respondents

Payments

Residential home owners

Adjudication

Nominating authorities

Legislation

Building and Construction Industry Security of Payment Act 2009