Security of Payment — SOPA Adjudication in Brisbane

Queensland’s security of payment regime under the Building Industry Fairness (Security of Payment) Act 2017 (Qld) (BIF Act) gives contractors, subcontractors, and suppliers a fast-track mechanism to recover unpaid progress claims — without going to court. Adjudication decisions are made in as little as 10 business days. Miss the timeframes, however, and you lose your rights entirely. Boss Lawyers acts for parties on both sides of SOPA adjudication in Brisbane and Queensland.

Who Can Make a Payment Claim Under the BIF Act?

Under s 67 of the BIF Act, a person who has undertaken construction work, or supplied related goods and services, under a construction contract can serve a payment claim on the respondent (the person who owes payment). This includes:

• Head contractors claiming from principals
• Subcontractors claiming from head contractors
• Suppliers of materials to construction sites
• Design and engineering consultants
• Plant hire companies on construction projects

The definition of “construction work” in the BIF Act is broad — it covers building, engineering, civil, and related work. However, certain contracts are excluded (e.g., residential contracts where the owner/occupier resides in or will reside in the building).

The Adjudication Process — Timeframes That Cannot Be Missed

The BIF Act process is unforgiving on timeframes. Every step has a deadline, and many are non-extendable:

1. Serve a payment claim: The claimant serves a tax invoice or payment claim on the respondent. The claim must be identified as a payment claim under the BIF Act (a “SOPA notice”) to invoke the adjudication process.
2. Respondent’s payment schedule (10 business days): The respondent must serve a payment schedule within 10 business days of receiving the payment claim, or within the time stipulated in the contract (if shorter). The payment schedule must state the amount the respondent proposes to pay (if any) and the reasons for any scheduled amount less than the claimed amount.
3. Failure to respond — default adjudication: If the respondent fails to provide a payment schedule, the claimant can apply for adjudication without the respondent’s participation, and the adjudicator will award the full claimed amount.
4. Adjudication application (10 business days): If the respondent provides a payment schedule with a lesser amount (or nil), the claimant has 10 business days from receiving the schedule to lodge an adjudication application with a registered ANA (Authorised Nominating Authority).
5. Adjudication response (5 business days): The respondent has 5 business days to provide an adjudication response — and critically, the respondent is limited to the reasons stated in the original payment schedule. New reasons cannot be introduced at adjudication.
6. Adjudication decision (10 business days): The adjudicator must decide within 10 business days of receiving the response (or of the time for response expiring). The decision is binding and can be registered as a court judgment.

Enforcing Adjudication Certificates

Once an adjudication decision is made, the claimant can obtain an adjudication certificate and register it as a judgment in the District Court or Supreme Court of Queensland under s 100 of the BIF Act. The registered certificate is enforceable as a court judgment — which means the full suite of enforcement tools (garnishee orders, statutory demands, seizure, winding up) become available.

The respondent cannot challenge the merits of the adjudication decision in court — the only grounds for setting aside a judgment based on an adjudication certificate are jurisdictional defects (rare). This makes the BIF Act regime uniquely powerful for claimants.

Responding to a Payment Claim — Risks of Getting It Wrong

If you are the respondent to a SOPA payment claim:

• Failure to respond within 10 business days means the adjudicator will award the full claimed amount — you lose your right to contest
• Reasons not in the payment schedule cannot be raised at adjudication — your payment schedule is your one chance to state all grounds for withholding payment
• A registered adjudication certificate can be enforced immediately — including by statutory demand and winding up application

Respondents who take SOPA claims seriously — and respond with a comprehensive, well-drafted payment schedule — have a real opportunity to reduce or defeat the claim. Those who ignore or minimise the claim risk a default adjudication decision for the full amount.

How Boss Lawyers Can Help

Boss Lawyers acts for contractors and respondents in SOPA adjudication matters across Queensland. Mark Harley, Principal Solicitor, has 17+ years of experience in commercial litigation and construction disputes. Our construction team:

• Advises on whether a payment claim is valid under the BIF Act
• Drafts payment claims designed to invoke the adjudication process correctly
• Prepares comprehensive adjudication applications with supporting documentation
• Drafts payment schedules that preserve all available defences
• Enforces adjudication certificates as court judgments
• Advises on court challenges where there is a genuine jurisdictional defect

Frequently Asked Questions

Does the BIF Act apply to residential building contracts?

The BIF Act excludes certain residential contracts — specifically, contracts where the owner/occupier is a resident individual and the work is for their own residence. Head contractors and subcontractors on residential projects may still have access to the regime depending on the contractual chain. Advice on your specific contract is essential.

Can I use SOPA adjudication if there is a dispute about defects or variations?

Yes, but the scope of adjudication is limited. The adjudicator can only consider the matters raised in the payment schedule (for respondents) and the adjudication application. Disputes about defects and variations can be raised, but the BIF Act is designed for rapid payment decisions — it is not a substitute for full litigation of complex technical disputes. Adjudication determines cash flow; final rights are determined by agreement or in court.

What happens after the adjudication decision — is it final?

An adjudication decision is “pay now, argue later”. It is binding and enforceable as a court judgment, but the parties retain their rights to pursue the underlying dispute (contract rights, defects, variations) in litigation or arbitration after the adjudication. The adjudication does not finally determine the parties’ legal rights — it determines interim cash flow.