Is using adjudication for dispute payment claims worth it?

When you are owed money for the work you have done it’s not about going to adjudication, it’s about getting paid.

Adjudication is only one of several options usually available to claimants who are chasing unpaid money.

The other options might include pursuing entitlement under the contract through the dispute resolution provisions, making a claim to QCAT, and of course having recourse to the courts.

Of the available options pursuing adjudication through the BCIPA is quicker and generally less costly than the alternatives; however remembering that an adjudicator’s decision is an interim award only and not finally binding on the parties under the contract.

The objective of the BCIPA is to keep money flowing through the contractual chain by legislating for the adjudication of payment disputes.

Notwithstanding the decrease in claimants success rate since the amendments to the BCIPA were introduced in December 2014, claimants on average overall get approximately 28% of the claimed amount (compared to approximately 42% pre the December 2014 BCIPA amendments), with all but the higher value claims (+ $500K) receiving between 50-67% of the claimed amount (compared with 57-99% pre the December 2014 BCIPA amendments).

Overall, the adjudication process is relatively quick for ‘standard’ payment claims ($750K or less), and if prepared properly and substantiated there is a good chance of success.

If in doubt – seek expert assistance from Adjudicate Assist.