Timing and the Building and Construction Security of Payment Act 1999

Nick Kallipolitis

The Building and Construction Security of Payment Act 1999 (“the Act”) is one of the shortest yet most litigated pieces of legislation. The inherent litigious nature of this legislation stems from the fact that people rarely understand their obligations or their rights under the Act.

This article aims to give a short, yet insightful, interpretation of the provisions of the legislation and its applicability to people in the building and construction industry.

The object of the Act is contained in section 3(1) and states:

“The object of this Act is to ensure that any person who undertakes to carry out construction work (or who undertakes to supply related goods and services) under a construction contract is entitled to receive, and is able to recover, progress payments in relation to the carrying out of that work and the supplying of those goods and services.”

What constitutes a Valid Payment Claim?

Timing

A Payment Claim may be served only within:

  1. The period in the construction contract; or
  2. 12 months after the construction work (or related service).

Contents of the Claim:

What are the requirements of the Payment Schedule?

Timing

A respondent has 10 days from receipt of a valid Payment Claim to serve a Payment Schedule.

Contents of the Schedule:

Adjudication Application

Timing

There are three basis upon which an Adjudication Application can be filed, depending on which circumstance applies, the timing for filing an Adjudication Application will differ.

Contents of Adjudication Application

The Adjudication Response

Timing

It must be served within 5 business days after receiving an Adjudication Application or 2 days after acceptance by an adjudicator, whichever is the later.

Contents of Response

For more information on the Building & Construction Security of Payment Act, or if you need advice regarding a dispute over payment, contact one of our experienced building and construction lawyers: