Adjudication Explained: How Australian Subcontractors Recover Unpaid Invoices

What Is Adjudication?

Adjudication is the fast-track dispute resolution mechanism built into the Security of Payment Act. When a contractor disputes your payment claim or simply doesn’t respond, you can apply for adjudication — an independent determination of how much you are owed.

Unlike court proceedings, adjudication is designed to be fast, inexpensive and accessible to subcontractors without legal expertise. Most adjudications are resolved within a few weeks.

How Adjudication Works

Step 1: Apply to a Nominating Authority

You apply for adjudication through an Authorised Nominating Authority (ANA) or the relevant government body. In QLD this is the QBCC. In NSW you choose from several ANAs. The nominating authority appoints a registered adjudicator.

Step 2: Submit Your Application

Your adjudication application must be lodged within the statutory timeframe (typically 20 business days from the end of the payment schedule period). The application includes your payment claim, any payment schedule received, and your reasons for claiming.

Step 3: The Respondent Replies

The respondent has a limited period (usually 5 business days) to lodge an adjudication response. If they failed to serve a payment schedule, their ability to raise new reasons in the adjudication response may be limited.

Step 4: The Determination

The adjudicator reviews both submissions and issues a determination, typically within 10 business days. The determination specifies how much is payable and by when.

Step 5: Enforcement

If the respondent doesn’t pay the adjudicated amount, you can file the determination in court as a judgment debt and enforce it immediately — including through garnishee orders, writs of execution, and property charges.

Adjudication Costs

Adjudicator fees vary by claim size and complexity. For claims under $100,000, fees are typically $1,000–$3,000. For larger claims, fees may be higher. The adjudicator has discretion to award the fees against the unsuccessful party.

PayClaim Auto-Generates Your Adjudication Application

If your head contractor doesn’t respond within the statutory period, PayClaim automatically generates a complete, compliant adjudication application for your state — ready to lodge immediately. No extra cost, no extra steps.