Adjudication 101: How a $1,200 Process Can Recover Six-Figure Debts

You’re owed $85,000. Your head contractor won’t return your calls. Your lawyer’s retainer alone would cost $5,000, and a court case could drag on for two years. Meanwhile, you’ve got wages to meet and materials to buy.

This is where adjudication comes in. It’s a formal process built into Australia’s Security of Payment legislation that lets you recover money fast—and it costs a fraction of what most tradies think.

What Is Adjudication?

Adjudication is a statutory right available to subcontractors and suppliers under the Security of Payment Act in every Australian state and territory. It’s designed specifically for the construction industry, and it works like this:

You lodge a claim with an independent adjudicator. The other party (the debtor) has a short window to respond. The adjudicator makes a binding decision on the spot—usually within two to four weeks. That decision is enforceable immediately, even if the debtor disagrees and plans to take you to court later.

The legislation varies slightly by state:

• NSW: Security of Payments Act 1999
• Queensland: Building Industry Fairness (Security of Payment) Act 2017
• Victoria: Security of Payments Act 2002
• South Australia, WA, Tasmania, ACT: Similar acts with comparable timeframes and protections

The key feature: it doesn’t require you to prove you’re right in a full legal sense. You just need to show you’ve served a valid payment claim, the debtor hasn’t paid or issued a payment schedule, and you’ve followed the procedural steps. The burden then shifts to them to defend their position.

Why Debtors Take Adjudication Seriously

Here’s the thing about adjudication: debtors know it’s binding. They can’t ignore it and hope you go away.

Once an adjudicator issues a determination, it’s enforceable in court. That means if they don’t pay, you can pursue recovery through the court system—but now you’re holding a formal determination, not just a dispute. Many debtors choose to pay or settle rather than face fast-track adjudication and the costs that follow. Others use it as a reality check: when they see you’re serious enough to lodge a formal claim, they suddenly find budget they said didn’t exist.

It’s not magic. But it’s a credible, legal mechanism with teeth.

The Timeline and Cost Structure

Here’s where adjudication wins against traditional legal action:

1. You serve a payment claim on the debtor (document your work and invoice amount)
2. Debtor has 10 business days (NSW) or similar window to issue a payment schedule or pay
3. If they don’t, you lodge an adjudication application with a registered adjudicator
4. Adjudicator has 10-21 days (depending on state) to hear both sides and issue a determination
5. Total time: roughly four to eight weeks from claim to decision

Total cost? Adjudicator fees typically run $800–$1,200 depending on the claim amount and complexity. That’s roughly the cost of a single lawyer’s site visit or a court filing fee. For a $50,000 or $100,000 debt, it’s negligible.

Compare that to hiring a solicitor ($5,000–$15,000 upfront), waiting 12–24 months for a court hearing, and then waiting longer still for judgment and enforcement. Adjudication is lean and mean.

How to Get Started

The process requires paperwork: your payment claim needs to be compliant with the state legislation, properly served, and timed correctly. Procedural errors can kill a claim.

That’s where tools like PayClaim come in. Instead of navigating the legislation and forms yourself or paying a lawyer to do it, you can file a payment claim through a self-service platform that guides you through the requirements for your state and prepares the documents to lodge. Flat fee: $79.

You’ll need:

• Documentation of work done or goods supplied (invoices, variations, schedules of work)
• Evidence of service (how and when you sent the original payment claim)
• Proof of non-payment or absence of a valid payment schedule
• The debtor’s correct legal name and contact details

Once your claim is prepared and lodged, the debtor’s 10 business days begins. From there, the adjudicator takes over.

Realistic Expectations

Adjudication isn’t a shortcut to guaranteed money. It’s a process, and outcomes depend on the merits of your claim and the debtor’s defence. A debtor with a legitimate reason not to have paid—or a solid counterclaim—can put up a real fight.

But here’s what makes adjudication valuable: it forces the issue. It costs the debtor legal fees to defend. It creates a formal record. It signals that you’re not going to disappear. And it moves fast enough that most small and medium construction businesses can’t afford to ignore it.

For tradies and subcontractors owed serious money, adjudication is the tool that sits between “sending another invoice” and “hiring a litigation lawyer.” It’s practical, it’s Australian law, and it’s designed exactly for your situation.

If you’re owed money and the debtor’s stopped communicating, adjudication might be your next move. Check the Security of Payment Act for your state, gather your paperwork, and consider lodging a claim. It could take weeks, not years, to get a decision in your hands.