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PAYMENT CLAIMS
A payment claim must:
· identify the construction work and payment period
to which the claim relates
· identify the amount claimed, and
· state that the claims are made under the Act.
The usual phrase used to state that the claim is
made under Act is:
"This is a payment claim made under the (ROM)
Building and Construction Industry Security of
Payment Act 1999."
The payment claim must comply with the contract
or if the contract is silent then the Act.
PAYMENT SCHEDULES (THE REPLY
TO THE CLAIM)
A payment schedule is anything in writing that
makes a rejection,
completely or in part, of the
payment claim.
A payment schedule must:
· identify the payment claim
to which it relates, and
· indicate the amount of the payment (if any) that
the respondent proposes to make.
The schedule must advise why the respondent
proposes to pay nothing or less than what is
claimed in the payment claim.
If the respondent does not dispute the claim or
want to challenge it then they need do nothing and
then will be liable when the claim payment
becomes due for payment.
ACCEPTING OR REJECTING THE
PAYMENT SCHEDULE
If the claimant accepts the payment schedule then
they need only wait until the time for payment for
the amount indicated in the payment schedule.
If the claimant wishes to reject the payment
schedule then they can make an application for
adjudication within 10 business days of receiving
the payment schedule.
NO PAYMENT SCEHDULE AND NO
PAYMENT
If there is no payment schedule and no payment
then the claimant will have two choices:
· Issue court proceedings
the respondent is
theoretically not entitled to defend or cross claim.
· Issue a section 17(2) notice
this notice gives a
further 5 business days for the respondent to serve
a payment schedule, after which the claimant can
make an adjudication application whether a
payment schedule is served or not. The application
for adjudication must be made within 10 business
days of receiving the payment schedule after the
expiry of the 5 business day period provided in the
notice.
The Building and Construction Industry Security of
Payment Act 1999 can be difficult to understand
especially when used for the first time. While the
procedure is relatively basic the detail can be quite
tricky and the time periods are strict.
If you are unfamiliar with the Act then you should
contact MBA Lawyers for advice as soon as you
receive a payment claim or wish to make a
payment claim. MBA Lawyers can provide
guidance throughout the procedure.