As businesses begin to wind down for the 2020 year and employees take a well-earned break after the turbulent year we have all had, it is important to keep an eye out for Payment Claims served under construction contracts leading up to Christmas.
What is a Payment Claim?
A Payment Claim is a request for payment by a contractor for work completed under a construction contract. Claims can either be submitted at the end of each month or as prescribed by the contract.
Upon being served with a Payment Claim, you have 10 business days to provide a response to the Payment Claim in the form of a Payment Schedule.
What happens if I don’t respond?
Failure to respond to a Payment Claim can allow the contractor to proceed to adjudication and having the Payment Claim adjudicated or to proceed directly to Court to seek a Judgment against you.
If the claim is adjudicated and a certificate is issued, it can be registered as a judgment against you and allow the claimant to enforce it like a Judgment from a Court.
What should I do if I am served?
If you are served with a Payment Claim, do not delay – time is of the essence and you should act quickly.
From the date of service you have 10 business days to put on a Payment Schedule in reply to respond to the Claim to protect your position.
Doing nothing may lead to the claimant proceeding to adjudication and having the claim progressed or worse proceeding to Court to obtain a Judgment.
If you are served with a Payment Claim, it requires specialised legal advice and assistance to advise on the t steps and recommendations to be undertaken in your particular situation.
How can Marsdens help?
Marsdens is open over the Christmas and New Year break to help your business.
If you are served with a Payment Claim, or are looking for advice regarding debts you owe or are owed under a construction contract, contact Aaran Johnson on ajohnson@marsdens.net.au or Bharath Balasubramanian on bbalasubramanian@marsdens.net.au or by phoning 02 4626 5077 to discuss how Marsdens can help you.
The contents of this publication are for reference purposes only. This publication does not constitute legal advice and should not be relied upon as legal advice. Specific legal advice should always be sought separately before taking any action based on this publication.
