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New South Wales · adjudication

How adjudication works in New South Wales

Adjudication is the fast, binding-for-now determination of a payment dispute under the Building and Construction Industry Security of Payment Act 1999 (NSW) - built for cash flow, not courtroom perfection. In New South Wales, applications go typically 10 business days from receiving a payment schedule that disputes the claim, through a private authorised nominating authority. The strongest position a subcontractor can hold is a valid payment claim the builder never answered with a payment schedule: the full amount becomes payable and the builder's defences are barred.

The sequence

A valid payment claim starts everything. The builder has 10 business days to serve a payment schedule saying what it will pay and why. From there, two roads: a schedule that disputes your claim leads to an adjudication application; no schedule at all makes the full amount a debt due - and in that case the builder is barred from raising its reasons before the adjudicator.

Head contractors must pay subcontractors within 20 business days of the claim, retention money on larger projects must be held in trust, and work can lawfully be suspended after non-payment on two business days' notice.

What wins at adjudication

Adjudicators decide quickly and on the documents. The winning inputs are boring: a claim that identifies the work and the amount, served on time to the right party; contemporaneous records - site diaries, notices, delivery dockets, emails anchoring dates; and a claimed amount built up transparently.

Most of that is decided months earlier, on site, by habit. The subbies who win at adjudication are the ones whose paperwork was already in order when the dispute started.

Where to apply

Authorised Nominating Authorities (NSW Fair Trading maintains the list). Applications go through a private ANA of the claimant's choice.

Exact deadlines and application mechanics should be verified against the Act and current guidance before filing - they're strict, and a defective application wastes the strongest lever you have. Official guidance: https://www.fairtrading.nsw.gov.au/trades-and-businesses/construction-and-trade-essentials/security-of-payment

Where does your contract sit?

Claim Pro - likelihood of success, the builder's likely defence, and next steps under New South Wales law.

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Frequently asked questions

How long does adjudication take in NSW?

Determinations typically land within about 10 business days of the adjudicator accepting the application - the regime is built to move at cash-flow speed, not litigation speed.

Do I need a lawyer to adjudicate?

No - the regime was designed for parties to run themselves, and many subcontractors do. For larger or messier disputes a construction lawyer's review of the application is cheap insurance. Either way, the evidence that decides it is the paperwork you kept on site.

Keep reading
How does adjudication actually work?What makes a progress claim one that actually gets paid?Can I suspend work if I'm not being paid?How long can a builder take to pay a subcontractor in New South Wales?Time bars in New South Wales subcontracts: what you lose, and whenRetention on New South Wales subcontracts: what's normal, and what to watchNot being paid in New South Wales: when can you lawfully stop work?Variations on New South Wales subcontracts: getting changed work paid

General information for Australian subcontractors, not legal advice. Statutory deadlines change and have exceptions - verify against the Act and current guidance, or with a construction lawyer, before acting on them.