As some of you may be aware the NSW Government recently conducted a review of the Act.
Well some amazing progress has come out of it. On 29th of November an amendment to the Act was tabled but is yet to come into operation.
It allows the Claimant to freeze the claimed amount from the Prinicpal to the Head Contractor, or else one step up the contractual chain. So if you are working for a Head Contractor, you can have the claimed amount left out of the next payment from the Principal to the Head Contractor, until the adjudication is decided. How good is that?!
This is how it will work:
1. You take the claim process to the point of preparing an adjudication application
2. You serve a 'Payment Withholding Request' on the Principal
3. You lodge the adjudication application
4. If you don't know who the Principal is you can request that the adjudicator direct that the Respondent provide all the details. If the Respondent refuses, they can get fined.
5. Upon receipt of a 'Payment Withholding Request' the Principal must withold that amount from the next payment to the defaulting contractor (Respondent).
6. The obligation to withhold the money lasts until whichever happens first: 1) The Respondent pays, 2) a period of 20 business days elapses after the Principal gets a copy of the adjudication determination
7. You must serve a copy of the adjudicator's determination on the Principal within 5 business days of receiving it.
If the Principal ignores the request then the Principal becomes jointly and severally liable with the Respondent to the debt owed to the Claimant! So then they both owe you the money!
The value of adjudication has never been higher.
We will keep you updated on this amendment and in particular let you know when it comes into operation.
If you want to have a read of the amendment here is the link:
www.legislation.nsw.gov.au/maintop/view/inforce/act+103+2010+cd+0+N