Important COVID-19 Update

x

These are certainly challenging times for us all.

We are committed to doing everything we can to prioritise the wellbeing of our people, those who use our services and their representatives and the communities we serve to help contain the spread of COVID-19. Following the Prime Minister’s announcement on Saturday, our people will begin working remotely from today, Monday 23 March.

Having well developed online dispute resolution options, it will in many ways be business as usual for us as we focus on providing a seamless service, regardless of where our Registry staff, adjudicators, arbitrators and mediators are working.

We know you are working through similar challenges to ours and that these are uncertain times for everyone. From all of us here we send our thoughts to you, your teams and families.

If you have any questions, please do not hesitate to get in touch. Please let us know if we can be of further assistance to you and we will keep you informed with any further updates.

General Claims

Claims involving amounts in dispute greater than $50,000.00 including GST, claims for declaratory relief, and claims under $50,000.00 that do not meet the criteria for low value claims fall under the General Claims track.

Please note that, for General Claims, any amount prescribed as security for the adjudicator’s fees and expenses is a nominal and arbitrary amount only and is not an estimate of the cost of the adjudication.

For General Claims, a notice of acceptance will not be served on the parties to the adjudication until the claimant, or the parties jointly, have paid (in clear funds) into the trust account of BDT a deposit as security for the adjudicator’s fees and expenses in accordance with the following table:

Value of Claim Security Payment Required
≤ $24,999.99 $6,000.00
$25,000.00 ≤ $49,999.99 $8,000.00
$50,000.00 ≤ $99,999.99 $10,000.00
$100,000.00 ≤ $499,999.99 $15,000.00
$500,000.00 ≤ $999,999.99 $17,500.00
≥ $1,000,000.00 $20,000.00
rights and obligations only (declaratory relief) $10,000.00

In almost every case, the claimant will pay the security amount required to secure the appointment of the adjudicator immediately following service of the notice of adjudication when making an application for the appointment of an adjudicator. In such cases the claimant may, in its notice of adjudication, and subsequently in its adjudication claim, seek a determination from the adjudicator that the respondent, or any other party to the adjudication, is liable to meet the adjudicator’s fees and expenses and to reimburse the claimant for the security paid in such proportions as the adjudicator determines.

When BDT serves the adjudicator’s notice of acceptance on the parties, the Registrar will invite the respondent to contribute an equal share of the amount paid as security by the claimant on the basis that the Act contemplates that the parties will bear their own costs and expenses and meet the adjudicator’s fees in equal proportions unless the grounds in sections 56(1) and 57(4) are made out.

In the event that the respondent pays that amount, BDT will immediately issue the respondent with a receipt and refund the claimant in that same amount leaving the adjudicator to ultimately determine the issue of costs as between the parties.

Please note that any amount paid as security for the adjudicator’s fees and expenses is a nominal amount only and is not, and shall not, be considered an estimate of the cost of the adjudication which shall be calculated according to the time engaged on the duties of the adjudication by the adjudicator, together with any expenses incurred by the adjudicator in the execution of those duties.

In the event that the adjudicator’s fees and expenses prove to be less than the amount held by BDT as security, BDT will provide the adjudicator’s determination to the parties to the adjudication as soon as practicable after the adjudicator has made his or her determination and BDT will disburse the balance of the monies held as security to the parties in the manner determined by the adjudicator.

In the event that the adjudicator’s fees and expenses are greater than the amount held as security, the parties will be advised of the adjudicator’s actual fees and expenses by BDT and the parties will be requested to pay the balance in order to uplift the determination. When the balance is paid in full, a copy of the determination will be provided to each of the parties to the adjudication by BDT.

Adjudication: calculating time over the Christmas period 2019-2020

What are the non-working days over the Christmas period this year?

The builder’s right to fix

Introduction When a dispute over defective building work turns ugly, the owner is sometimes tempted to refuse the builder the opportunity of returning to rectify the defects.  There are risks in this course.  This update considers a recent NSW Supreme Court decision...

Case In-Brief: Hybrid contracts and the payment provisions of the Construction Act

The Housing Grants, Construction and Regeneration Act 1998 (the Act) applies to “construction operations”. Where a contract relates to both “construction operations” and non-construction operations, the question arises of how payment mechanisms apply to construction...

When can you go to Adjudication?

Under section 25 of the Act, any party to a construction contract is entitled to refer a dispute arising under that construction contract to adjudication except where the parties have agreed to refer disputes between them to arbitration and the arbitration is an...

A brief introduction to Adjudication

What is adjudication? Adjudication is a unique fast track statutory dispute resolution process or resolving building and construction disputes under the Act. It is the most commonly used dispute resolution process for resolving such disputes. Adjudication is quick and...

Initiating Adjudication: The Notice of Adjudication

Initiating Adjudication: Back to Basics   Part One: The Notice of Adjudication The preparation of the Notice of Adjudication is arguably the most important step in the Adjudication process under the Construction Contracts Act (the Act). It is that document...

Initiating Adjudication: Service of the Notice of Adjudication

Initiating Adjudication: Back to Basics   Part Two: Service of the Notice of Adjudication You have your Notice of Adjudication prepared, but what steps do you need to take to serve it? This note sets out in brief the requirements for service under the...

Initiating Adjudication: Appointing an Adjudicator

Initiating Adjudication: Back to Basics Part Three: Appointing an Adjudicator Following on from Part Two of our three-part series on initiating adjudication, in this note we briefly look at how to appoint an adjudicator under the Construction Contracts Act (the Act)....