This video is a first in a series dramatising a hypothetical progress payment dispute that leads to an adjudication. The videos in this series reference the Building and Construction Industry Security of Payment Act 2009 (SA).
The Act introduces a new method for contractors and subcontractors to recover payment for their work. In the past, when payment was late, it was necessary to try to enforce the contract terms through the courts or arbitration. The Act changes all this. It introduces a “pay now, argue later” scheme and makes it easier for suppliers of labour, materials and/or services in the construction industry to obtain payment on time.
The essential scheme of the Act has been introduced around the world in recognition of the fact that cash flow is the lifeblood of the construction industry. While the Act can interact with the parties’ contract, the timelines in it are independent of contract deadlines and impose a separate regime.