{"id":"construction-contracts-security-of-payments-act-2004","name":"Construction Contracts (Security of Payments) Act 2004","slug":"construction-contracts-security-of-payments-act-2004","collection":"act","jurisdiction":"nt","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":29954,"registerId":"nt-construction-contracts-security-of-payments-act-2004-current","compilationNumber":null,"startDate":"2026-04-01","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Construction Contracts (Security of Payments) Act 2004","content":"NORTHERN TERRITORY OF AUSTRALIA\nCONSTRUCTION CONTRACTS (SECURITY OF PAYMENTS) ACT 2004\nAs in force at 25 May 2024\nTable of provisions\nPart 1 Preliminary matters\nDivision 1 Introduction\n1 Short title ......................................................................................... 1\n2 Commencement .............................................................................. 1\n3 Object and its achievement ............................................................. 1\nDivision 2 Interpretation\n4 Definitions ........................................................................................ 2\n4A Meaning of high value construction contract.................................... 3\n5 Construction contract ....................................................................... 4\n6 Construction work ............................................................................ 4\n7 Goods and services related to construction work ............................ 6\n7A Meaning of payment claim ............................................................... 7\n8 Payment dispute .............................................................................. 7\nDivision 3 Operation of Act\n9 Construction contracts to which this Act applies .............................. 8\n10 No contracting out ........................................................................... 8\n10A High value construction contract may contract out .......................... 9\n11 Act binds Crown .............................................................................. 9\n11A Interaction with Community Justice Centre Act 2005 .................... 10\nPart 2 Prohibited and implied provisions of\nconstruction contracts\nDivision 1 Prohibited provisions\n12 Pay if paid and pay when paid provisions ...................................... 10\n13 Provisions requiring payment to be made after 30 working\ndays ............................................................................................... 10\n14 Prescribed provisions .................................................................... 10\n15 Other provisions of contract not affected ....................................... 10\nDivision 2 Implied provisions\n16 Variations of contractual obligations .............................................. 11\n17 Contractor's entitlement to be paid ................................................ 11\n\nConstruction Contracts (Security of Payments) Act 2004 ii\n18 Contractor's entitlement to claim progress payments .................... 11\n19 Making payment claims ................................................................. 11\n20 Responding to payment claims and time for payment ................... 11\n21 Interest on overdue payments ....................................................... 11\n22 Ownership of goods....................................................................... 12\n23 Duties as to unfixed goods on insolvency ...................................... 12\n24 Retention money ........................................................................... 12\n25 Interpretation of implied provisions ................................................ 12\nPart 3 Adjudication of disputes\nDivision 1 Object of adjudication\n26 Object ............................................................................................ 12\nDivision 2 Starting adjudication\n27 Who can apply for adjudication...................................................... 13\n28 Applying for adjudication................................................................ 13\n28A Withdrawing an application for adjudication................................... 14\n29 Responding to application for adjudication .................................... 14\n30 Appointment of adjudicator in absence of agreed appointment ..... 15\n31 Disqualification of adjudicator on grounds of conflict of interest .... 16\nDivision 3 Adjudication process\n33 Adjudicator's functions ................................................................... 17\n34 Adjudication procedure .................................................................. 19\n35 Interest until determination ............................................................ 20\n36 Costs of parties to payment disputes............................................. 20\n37 Evidentiary value of certificates of completion and amounts\npayable .......................................................................................... 21\n38 Content of determination ............................................................... 21\n39 Dismissed applications .................................................................. 22\nDivision 4 Effect of determinations\n40 Determinations have effect despite other proceedings .................. 22\n41 Payment of amount determined and interest ................................. 23\n42 Progress payment under determination to be on account ............. 23\n43 Determination final......................................................................... 23\nDivision 5 Enforcing determinations\n44 Contractor may suspend obligations for principal's non-\ncompliance .................................................................................... 24\n45 Determination may be enforced as order of court.......................... 25\n\nConstruction Contracts (Security of Payments) Act 2004 iii\nDivision 6 General\n46 Costs of adjudications ................................................................... 25\n47 Effect of this Part on civil proceedings ........................................... 27\nPart 4 Administration\nDivision 1 Construction Contracts Registrar\n49 Registrar ........................................................................................ 27\n50 Provisions relating to appointment of non-public sector\nemployee ....................................................................................... 28\n51 Functions ....................................................................................... 29\nDivision 2 Adjudicators and prescribed appointers\n52 Registering adjudicators ................................................................ 29\n53A Adjudicators to give Registrar information ..................................... 30\n54 Publication of adjudicators' decisions ............................................ 30\n55 Adjudicators' and prescribed appointers' rates to be published ..... 30\nDivision 3 Miscellaneous provisions\n56 Protection from liability .................................................................. 31\n57 Evidentiary provisions .................................................................... 31\nPart 5 Review by NTCAT\n58 Review by NTCAT ......................................................................... 31\nPart 6 Miscellaneous provisions\n63 Annual report ................................................................................. 32\n64 Regulations.................................................................................... 32\n65 Review of Act................................................................................. 33\nPart 7 Repeals and transitional matters\nDivision 1 Repeals\n66 Repeal of Workmen's liens legislation ........................................... 33\nDivision 2 Transitional matters for Justice Legislation\nAmendment Act 2006\n67 Transitional provision ..................................................................... 33\n\nConstruction Contracts (Security of Payments) Act 2004 iv\nDivision 3 Transitional matters for Construction\nContracts (Security of Payments) Legislation\nAmendment Act 2019\n68 Existing payment claims ................................................................ 34\n69 Registration of adjudicators ........................................................... 34\nSchedule 1 Implied provisions\nSchedule 2 Reviewable decisions and affected\npersons\nENDNOTES\n\nNORTHERN TERRITORY OF AUSTRALIA\n____________________\nAs in force at 25 May 2024\n____________________\nCONSTRUCTION CONTRACTS (SECURITY OF PAYMENTS) ACT 2004\nAn Act to secure payments under construction contracts and provide for\nthe adjudication of disputes about payments under construction\ncontracts, and for related purposes\nPart 1 Preliminary matters\nDivision 1 Introduction\n1 Short title\nThis Act may be cited as the Construction Contracts (Security of\nPayments) Act 2004.\n2 Commencement\nThis Act comes into operation on the date, or respective dates,\nfixed by the Administrator by notice in the Gazette.\n3 Object and its achievement\n(1) The object of this Act is to promote security of payments under\nconstruction contracts.\n(2) The object of this Act is to be achieved by:\n(a) facilitating timely payments between the parties to\nconstruction contracts; and\n(b) providing for the rapid resolution of payment disputes arising\nunder construction contracts; and\n(c) providing mechanisms for the rapid recovery of payments\nunder construction contracts.\n\nPart 1 Preliminary matters\nDivision 2 Interpretation\nConstruction Contracts (Security of Payments) Act 2004 2\nDivision 2 Interpretation\n4 Definitions\nIn this Act:\nadjudication means the adjudication of a payment dispute under\nPart 3.\napplicant, for an adjudication, means the person who, under\nsection 28, makes application for the adjudication.\nappointed adjudicator, for a payment dispute, means the\nregistered adjudicator who, having been appointed under Part 3 to\nadjudicate the dispute, has been served with the application for\nadjudication.\ncivil works includes:\n(a) a road, railway, tramway, aircraft runway, canal, waterway,\nharbour, port or marina; and\n(b) a line or cable for electricity or telecommunications; and\n(c) a pipeline for water, gas, oil, sewage or other material; and\n(d) a path, pavement, ramp, tunnel, slipway, dam, well, aqueduct,\ndrain, levee, seawall or retaining wall; and\n(e) any works, apparatus, fittings, machinery or plant associated\nwith any works mentioned in paragraph (a), (b), (c) or (d).\ncontractor, see section 5(1).\nconstruction contract, see section 5.\nconstruction work, see section 6.\ndetermination means a determination made on an adjudication\nunder Part 3 of the merits of a payment dispute.\ngoods, in relation to construction work, see section 7(1).\nhigh value construction contract, see section 4A.\nobligations, of a contractor under a construction contract, means\nthe obligations mentioned in section 5(1) the contractor has under\nthe contract.\non-site services, in relation to construction work, see section 7(3).\n\nPart 1 Preliminary matters\nDivision 2 Interpretation\nConstruction Contracts (Security of Payments) Act 2004 3\nparty, to an adjudication, means the applicant and any person on\nwhom an application for the adjudication is served.\npayment claim, see section 7A.\npayment dispute, see section 8.\nprescribed appointer means a person prescribed as such by the\nRegulations.\nprincipal, for a construction contract, means the party to whom the\ncontractor is bound under the contract.\nprofessional services, in relation to construction work, see\nsection 7(2).\nregistered adjudicator means an individual registered as such\nunder section 52.\nRegistrar means the Construction Contracts Registrar appointed\nunder section 49.\nRegulations means the Regulations made under this Act.\nsite in the Territory means a site in the Territory, whether on land\nor off-shore.\nworking day means a day other than:\n(a) a Saturday or a Sunday; or\n(b) a day that is a public holiday in the place in which any relevant\nact is to be done or may be done (other than a public holiday\nthat is part of a day); or\n(c) a day in the period beginning on 25 December in a year and\nending on 7 January in the following year.\nNote for section 4\nThe Interpretation Act 1978 contains definitions and other provisions that may be\nrelevant to this Act.\n4A Meaning of high value construction contract\nA high value construction contract means a construction\ncontract under which the amount payable for construction work is\nequal to or greater than the amount prescribed by regulation.\n\nPart 1 Preliminary matters\nDivision 2 Interpretation\nConstruction Contracts (Security of Payments) Act 2004 4\n5 Construction contract\n(1) A construction contract is a contract (whether or not in writing)\nunder which a person (the contractor) has one or more of the\nfollowing obligations:\n(a) to carry out construction work;\n(b) to supply to the site where construction work is being carried\nout any goods that are related to construction work;\n(c) to provide, on or off the site where construction work is being\ncarried out, professional services that are related to the\nconstruction work;\n(d) to provide, on the site where construction work is being carried\nout, on-site services that are related to the construction work.\n(1A) A contract remains a construction contract for this Act even if the\ncontract has expired or has been terminated.\n(2) In Part 3, a construction contract includes:\n(a) a contract modified under section 13; and\n(b) a contract in which a provision is implied under Part 2,\nDivision 2.\n6 Construction work\n(1) Construction work is any of the following work on a site in the\nTerritory:\n(a) reclaiming land, draining land or preventing the subsidence,\nmovement or erosion of land;\n(b) installing, altering, repairing, restoring, maintaining, extending,\ndismantling, demolishing or removing any works, apparatus,\nfittings, machinery or plant associated with any work\nmentioned in paragraph (a);\n(c) constructing the whole or a part of any civil works, or a\nbuilding or structure, that forms or will form (whether\npermanently or not and whether or not in the Territory), part of\nland or the seabed (whether above or below it);\n\nPart 1 Preliminary matters\nDivision 2 Interpretation\nConstruction Contracts (Security of Payments) Act 2004 5\n(d) fixing or installing on or in anything mentioned in paragraph (c)\nany fittings forming, or to form, (whether or not permanently)\npart of the thing, including:\n(i) fittings for electricity, gas, water, fuel oil, air, sanitation,\nirrigation, telecommunications, air-conditioning, heating,\nventilation, fire protection, cleaning, the security of the\nthing or the safety of people; and\n(ii) lifts, escalators, insulation, furniture or furnishings;\n(e) altering, repairing, restoring, maintaining, extending,\ndismantling, demolishing or removing anything mentioned in\nparagraph (c) or any fittings described in paragraph (d) that\nform part of the thing;\n(f) any work that is preparatory to, necessary for, an integral part\nof or for the completion of any work mentioned in\nparagraph (a), (b), (c), (d) or (e), including:\n(i) site or earthworks, excavating, earthmoving, tunnelling\nor boring; and\n(ii) laying foundations; and\n(iii) erecting, maintaining or dismantling temporary works, a\ntemporary building or a temporary structure, including a\ncrane or other lifting equipment and scaffolding; and\n(iv) cleaning, painting, decorating or treating any surface;\nand\n(v) site restoration or landscaping;\n(g) any work that is prescribed by the Regulations to be\nconstruction work for this Act.\n(2) However, construction work does not include any of the following\nwork on a site in the Territory:\n(a) drilling for the purposes of discovering or extracting oil or\nnatural gas, whether or not on land;\n(b) constructing a shaft, pit or quarry, or drilling, for the purposes\nof discovering or extracting any mineral bearing or other\nsubstance;\n(d) work prescribed by the Regulations not to be construction\nwork for this Act.\n\nPart 1 Preliminary matters\nDivision 2 Interpretation\nConstruction Contracts (Security of Payments) Act 2004 6\n(3) In addition, construction work does not include constructing the\nwhole or part of any watercraft.\n7 Goods and services related to construction work\n(1) Goods are related to construction work if they are:\n(a) materials or components (whether or not pre-fabricated) that\nwill form part of anything mentioned in section 6(1)(b) or (c) or\nof any fittings mentioned in section 6(1)(d); or\n(b) any fittings mentioned in section 6(1)(d) (whether or not\npre-fabricated); or\n(c) plant or materials (whether supplied by sale, hire or otherwise)\nfor use in connection with the carrying out of the construction\nwork at the site of the construction work; or\n(d) goods prescribed by the Regulations to be goods related to\nconstruction work for this Act.\n(2) Professional services are related to construction work if they are:\n(a) services that are provided by a profession and that relate\ndirectly to construction work or to assessing its feasibility\n(whether or not it proceeds), including surveying, planning,\ncosting, testing, architectural, design, plan drafting,\nengineering, quantity surveying and project management\nservices, but not including accounting, financial or legal\nservices; or\n(b) services that are provided by a profession that are prescribed\nby the Regulations to be professional services related to\nconstruction work for this Act.\n(3) On-site services are related to construction work if they are services\n(other than professional services):\n(a) that relate directly to construction work, including providing\nlabour to carry out construction work; or\n(b) prescribed by the Regulations to be on-site services related to\nconstruction work for this Act.\n(4) The Regulations may prescribe goods, professional services or\non-site services that are not related to construction work for this\nAct.\n\nPart 1 Preliminary matters\nDivision 2 Interpretation\nConstruction Contracts (Security of Payments) Act 2004 7\n7A Meaning of payment claim\n(1) A payment claim means a claim made under a construction\ncontract:\n(a) by the contractor to the principal for payment of an amount in\nrelation to the performance by the contractor of its obligations\nunder the contract; or\n(b) by the principal to the contractor for payment of an amount in\nrelation to the performance or non-performance by the\ncontractor of its obligations under the contract; or\n(c) for a construction contract mentioned in section 5(1A) that has\nexpired or been terminated – by the contractor to the principal\nfor payment of an amount in relation to an accrued right for the\ncontract; or\n(d) for a construction contract mentioned in section 5(1A) that has\nexpired or been terminated – by the principal to the contractor\nfor payment of an amount in relation to an accrued right for the\ncontract.\n(2) A payment claim may include a matter:\n(a) that was included in a previous payment claim; and\n(b) that has not been the subject of a determination under\nsection 33(1)(b).\nExamples for subsection (2)\n1 An amount that was included in a previous payment claim but was not dealt\nwith at that time.\n2 An amount that was included in a previous claim, but that has been\nsubsumed into a later claim (such as a rolling claim).\n3 An amount that was included in a claim that was not dealt with substantively\nbecause of procedural non-compliance.\n8 Payment dispute\nA payment dispute arises if:\n(a) a payment claim has been made under a contract and either:\n(i) the claim has been rejected or wholly or partly disputed;\nor\n(ii) when the amount claimed is due to be paid, the amount\nhas not been paid in full; or\n\nPart 1 Preliminary matters\nDivision 3 Operation of Act\nConstruction Contracts (Security of Payments) Act 2004 8\n(b) when an amount retained by a party under the contract is due\nto be paid under the contract, the amount has not been paid;\nor\n(c) when any security held by a party under the contract is due to\nbe returned under the contract, the security has not been\nreturned.\nDivision 3 Operation of Act\n9 Construction contracts to which this Act applies\n(1) This Act applies to a construction contract entered into after the\ncommencement of this section.\n(2) This Act applies to a construction contract:\n(a) irrespective of whether it is written or oral or partly written and\npartly oral; and\n(b) irrespective of where it is entered into; and\n(c) irrespective of whether it is expressed to be governed by the\nlaw of a place other than the Territory.\n(3) This Act does not apply to a construction contract to the extent to\nwhich it contains provisions under which a party is bound to carry\nout construction work, or to supply goods or services that are\nrelated to construction work, as a prescribed employee of the party\nfor whom the work is to be carried out or to whom the goods or\nservices are to be supplied.\n(4) This Act, or a provision of this Act, does not apply to a construction\ncontract, or a class of construction contracts, prescribed by the\nRegulations as a contract or class of contracts to which this Act, or\nthat provision, does not apply.\n(5) In this section:\nprescribed employee means an employee subject to an award or\na certified agreement made under the Fair Work Act 2009 (Cth).\n10 No contracting out\n(1) Subject to section 10A, a provision in an agreement or arrangement\n(whether a construction contract or not and whether in writing or\nnot) that purports to exclude, modify or restrict the operation of this\nAct has no effect.\n\nPart 1 Preliminary matters\nDivision 3 Operation of Act\nConstruction Contracts (Security of Payments) Act 2004 9\n(2) A provision in an agreement or arrangement that has no effect\nbecause of subsection (1) does not prejudice or affect the operation\nof other provisions of the agreement or arrangement.\n(3) Any purported waiver (whether in a construction contract or not and\nwhether or not in writing) of an entitlement under this Act has no\neffect.\n10A High value construction contract may contract out\n(1) Despite section 10, the parties to a high value construction contract\nmay agree to have payment disputes adjudicated other than under\nPart 3 if:\n(a) the agreement is a term of the high value construction\ncontract; and\n(b) the contract contains a dispute resolution mechanism in\naccordance with the Regulations.\n(2) However, the agreement does not apply in relation to a contract\nentered into before the commencement unless:\n(a) when the contract was entered into, it contained a dispute\nresolution mechanism that satisfies subsection (1)(b) as if the\nRegulations had commenced; and\n(b) the parties expressly agree in writing after the commencement\nthat the dispute resolution mechanism is to apply.\n(3) If a high value construction contract contains a dispute resolution\nmechanism mentioned in subsection (1)(b), Part 3 does not apply.\n(4) In this section:\ncommencement means the commencement of section 10 of the\nConstruction Contracts (Security of Payments) Legislation\nAmendment Act 2019.\n11 Act binds Crown\nThis Act binds the Crown in right of the Territory and, to the extent\nthe legislative power of the Legislative Assembly permits, the\nCrown in all its other capacities.\n\nPart 2 Prohibited and implied provisions of construction contracts\nDivision 1 Prohibited provisions\nConstruction Contracts (Security of Payments) Act 2004 10\n11A Interaction with Community Justice Centre Act 2005\nThe operation of this Act is subject to Part 4 of the Community\nJustice Centre Act 2005.\nNote for section 11A:\nPart 4 of the Community Justice Centre Act 2005 provides for the Director of the\nCommunity Justice Centre to be treated as a prescribed appointer for this Act.\nThat Part also creates exceptions to some of the rules in this Act.\nPart 2 Prohibited and implied provisions of\nconstruction contracts\nDivision 1 Prohibited provisions\n12 Pay if paid and pay when paid provisions\nA provision in a construction contract has no effect if it purports to\nmake the liability of a party (party A) to pay an amount under the\ncontract to another party contingent (whether directly or indirectly)\non party A being paid an amount by another person (whether or not\na party).\n13 Provisions requiring payment to be made after 30 working\ndays\nA provision in a construction contract that purports to require a\npayment to be made more than 30 working days after the payment\nis claimed must be read as being amended to require the payment\nto be made within 30 working days after it is claimed.\n14 Prescribed provisions\nA provision in a construction contract has no effect if it is a provision\nthat is prescribed by the Regulations to be a prohibited provision.\n15 Other provisions of contract not affected\nA provision in a construction contract that has no effect because of\nsection 12 or 14 or that is modified under section 13 does not\nprejudice or affect the operation of other provisions of the contract.\n\nPart 2 Prohibited and implied provisions of construction contracts\nDivision 2 Implied provisions\nConstruction Contracts (Security of Payments) Act 2004 11\nDivision 2 Implied provisions\n16 Variations of contractual obligations\nThe provisions in Schedule 1, Division 1 are implied in a\nconstruction contract that does not have a written provision about\nvariations of the contractor's obligations under the contract.\n17 Contractor's entitlement to be paid\nThe provisions in Schedule 1, Division 2 are implied in a\nconstruction contract that does not have a written provision about\nthe amount, or a way of determining the amount, that the contractor\nis entitled to be paid for the obligations the contractor performs.\n18 Contractor's entitlement to claim progress payments\nThe provisions in Schedule 1, Division 3 are implied in a\nconstruction contract that does not have a written provision about\nwhether or not the contractor is able to make a claim to the principal\nfor a progress payment for the obligations under the contract the\ncontractor has performed.\n19 Making payment claims\nThe provisions in Schedule 1, Division 4 are implied in a\nconstruction contract that does not have a written provision about\nhow a party must make a claim to another party for payment.\n20 Responding to payment claims and time for payment\nThe provisions in Schedule 1, Division 5 about the following matters\nare implied in a construction contract that does not have a written\nprovision about the matter:\n(a) when and how a party must respond to a payment claim made\nby another party;\n(b) by when a payment must be made.\n21 Interest on overdue payments\nThe provisions in Schedule 1, Division 6 are implied in a\nconstruction contract that does not have a written provision about\ninterest to be paid on any payment that is not made at the time\nrequired by the contract.\n\nPart 3 Adjudication of disputes\nDivision 1 Object of adjudication\nConstruction Contracts (Security of Payments) Act 2004 12\n22 Ownership of goods\nThe provisions in Schedule 1, Division 7 are implied in a\nconstruction contract that does not have a written provision about\nwhen the ownership of goods passes from the contractor for goods\nthat are:\n(a) related to construction work; and\n(b) supplied to the site of the construction work by the contractor\nunder its obligations under the contract.\n23 Duties as to unfixed goods on insolvency\nThe provisions in Schedule 1, Division 8 are implied in a\nconstruction contract that does not have a written provision about\nwhat must happen to unfixed goods of a kind mentioned in\nsection 22 if either of the following persons becomes insolvent:\n(a) the principal;\n(b) a person for whom, directly or indirectly, the principal is\nperforming construction work or to whom, directly or indirectly,\nthe principal is supplying goods or services that are related to\nconstruction work.\n24 Retention money\nThe provisions in Schedule 1, Division 9 are implied in a\nconstruction contract that does not have a written provision about\nthe status of an amount retained by the principal for the\nperformance by the contractor of its obligations under the contract.\n25 Interpretation of implied provisions\nThe Interpretation Act 1978 and sections 4 to 8 of this Act apply to\nthe interpretation of a provision that is implied in a construction\ncontract under this Part despite any provision in a construction\ncontract to the contrary.\nPart 3 Adjudication of disputes\nDivision 1 Object of adjudication\n26 Object\nThe object of an adjudication of a payment dispute is to determine\nthe dispute fairly and as rapidly, informally and inexpensively as\npossible.\n\nPart 3 Adjudication of disputes\nDivision 2 Starting adjudication\nConstruction Contracts (Security of Payments) Act 2004 13\nDivision 2 Starting adjudication\n27 Who can apply for adjudication\nIf a payment dispute arises under a construction contract, any party\nto the contract may apply to have the dispute adjudicated under this\nPart unless:\n(a) the matter has already been the subject of a valid\ndetermination; or\n(b) the dispute is the subject of an order, judgment or other\nfinding by an arbitrator or other person or a court or other body\ndealing with a matter arising under the contract.\n28 Applying for adjudication\n(1) To apply to have a payment dispute adjudicated, a party to the\ncontract must, within 65 working days after the dispute arises or, if\napplicable, within the period provided for by section 39(2)(b):\n(a) prepare a written application for adjudication; and\n(b) serve it on each other party to the contract; and\n(c) serve it on:\n(i) if the parties to the contract have appointed a registered\nadjudicator and that adjudicator consents – the\nadjudicator; or\n(ii) if the parties to the contract have appointed a prescribed\nappointer – the appointer; or\n(iii) otherwise – a prescribed appointer chosen by the party;\nand\n(d) provide any deposit or security for the costs of the adjudication\nthat the adjudicator or prescribed appointer requires under\nsection 46(7) or (8).\n(2) The application must:\n(a) be prepared in accordance with, and contain the information\nprescribed by, the Regulations; and\n(b) state the details of or have attached to it:\n(i) the construction contract involved or relevant extracts of\nit; and\n\nPart 3 Adjudication of disputes\nDivision 2 Starting adjudication\nConstruction Contracts (Security of Payments) Act 2004 14\n(ii) any payment claim that has given rise to the payment\ndispute; and\n(c) state or have attached to it all the information, documents and\nsubmissions on which the party making it relies in the\nadjudication.\n(3) The first day of the time period mentioned in subsection (1) is the\nday after the payment dispute arises, as set out in section 8.\n28A Withdrawing an application for adjudication\n(1) If a party has applied for adjudication of a dispute under\nsection 28(1), the party may withdraw the application before an\nadjudicator has been appointed by giving written notice to:\n(a) the prescribed appointer served with the application under\nsection 28(1)(c)(ii) or (iii); and\n(b) each other party to the contract.\n(2) If an adjudicator has been appointed, the party may withdraw the\napplication by giving written notice to:\n(a) the adjudicator; and\n(b) each other party to the contract.\n(3) However, the adjudicator must refuse the withdrawal if:\n(a) a party to the contract objects to the withdrawal; and\n(b) in the opinion of the adjudicator, the party objecting to the\nwithdrawal has a legitimate interest in obtaining a\ndetermination of the application.\n29 Responding to application for adjudication\n(1) Within 15 working days after the date on which a party to a\nconstruction contract is served with an application for adjudication,\nthe party must prepare a written response to the application and\nserve it on:\n(a) the applicant and on any other party that has been served with\nthe application; and\n(b) the appointed adjudicator or, if there is no appointed\nadjudicator, on the prescribed appointer on which the\napplication was served under section 28(1)(c).\n\nPart 3 Adjudication of disputes\nDivision 2 Starting adjudication\nConstruction Contracts (Security of Payments) Act 2004 15\n(2) The response must:\n(a) be prepared in accordance with, and contain the information\nprescribed by, the Regulations; and\n(b) state the details of, or have attached to it, any rejection or\ndispute of the payment claim that has given rise to the dispute;\nand\n(c) state or have attached to it all the information, documents and\nsubmissions on which the party making it relies in the\nadjudication.\n(3) However, in the response, the party responding to the application\nfor adjudication is not required to provide information or documents\nthat have already been provided by the applicant in the application.\n30 Appointment of adjudicator in absence of agreed appointment\n(1) If an application for adjudication is served on a prescribed\nappointer, the appointer must, within 5 working days after being\nserved:\n(a) appoint a registered adjudicator to adjudicate the payment\ndispute concerned; and\n(b) send the application and any response received by it to the\nadjudicator; and\n(c) give written notice to the parties and Registrar accordingly.\n(1A) Within 2 working days of being served with an application for\nadjudication and before appointing a registered adjudicator in\naccordance with subsection (1)(a), the prescribed appointer may\nconsult with the parties about the qualifications that are required for\nthe person who will be appointed as adjudicator.\nNote for subsection (1A)\nThe period mentioned in subsection (1) applies regardless of whether the\nprescribed appointer consults with the parties under this subsection.\n(2) If a prescribed appointer does not make an appointment under\nsubsection (1), the Registrar may appoint a registered adjudicator\nto adjudicate the payment dispute concerned.\n\nPart 3 Adjudication of disputes\nDivision 2 Starting adjudication\nConstruction Contracts (Security of Payments) Act 2004 16\n(3) If the Registrar makes an appointment under subsection (2), the\nRegistrar must:\n(a) give written notice to the prescribed appointer accordingly and\nrequire the appointer to serve the application and any\nresponse received by it on the adjudicator appointed by the\nRegistrar; and\n(b) give written notice to the parties accordingly.\n(4) If satisfied that the appointed adjudicator is unable, for any reason,\nto perform an adjudication, the prescribed appointer or the\nRegistrar (whichever appointed the adjudicator) may appoint a\nsubstitute adjudicator at any time before a determination is made.\n31 Disqualification of adjudicator on grounds of conflict of\ninterest\n(1) An appointed adjudicator is disqualified from adjudicating the\ndispute if the adjudicator has a material personal interest in:\n(a) the payment dispute concerned; or\n(b) the construction contract under which the dispute has arisen;\nor\n(c) any party to the contract.\n(2) If an appointed adjudicator is disqualified, the adjudicator must give\nwritten notice to the parties and Registrar of the disqualification and\nthe reasons for it.\n(3) A party to a payment dispute may apply to the Registrar for, and the\nRegistrar may make, a declaration that the appointed adjudicator is\ndisqualified under subsection (1) from adjudicating the dispute.\n(4) The application must be made before the person is notified of a\ndecision or determination made under section 33(1).\n(5) If the Registrar makes the declaration sought, the Registrar must\ngive written notice to the adjudicator and the parties of the\ndeclaration.\n(6) If a notice (a disqualification notice) is given by or to an appointed\nadjudicator under subsection (2) or (5), the adjudicator's\nappointment ends 5 working days after the date of the\ndisqualification notice unless, before the end of that period, each\nparty gives the adjudicator written authority to continue as the\nappointed adjudicator.\n\nPart 3 Adjudication of disputes\nDivision 3 Adjudication process\nConstruction Contracts (Security of Payments) Act 2004 17\n(6A) If the appointment of an appointed adjudicator ends under\nsubsection (6):\n(a) the applicant may make a further application for adjudication\nunder section 28; and\n(b) in calculating the period within which the application may be\nmade, the period from the date on which the previous\napplication was served under section 28(1)(c) to the date on\nwhich the appointment ends is not counted.\n(6B) However if, as calculated under subsection (6A)(b), the applicant\ndoes not have at least 10 working days to make the further\napplication, the further application may be made within 10 working\ndays after the date on which the appointment ends.\n(7) If the Registrar refuses to make the declaration sought, the\nRegistrar must give written notice to the adjudicator and the parties\nof the refusal.\nDivision 3 Adjudication process\n33 Adjudicator's functions\n(1) An appointed adjudicator must, within the prescribed time or any\nextension of it under section 34(3)(a):\n(a) dismiss the application without making a determination of its\nmerits if:\n(i) the contract concerned is not a construction contract; or\n(ii) the application has not been prepared and served in\naccordance with section 28; or\n(iia) the dispute that is the subject of the application is also\nthe subject of another application that has not been\ndismissed or determined; or\n(iii) an arbitrator or other person or a court or other body\ndealing with a matter arising under a construction\ncontract makes an order, judgment or other finding about\nthe dispute that is the subject of the application; or\n(iv) satisfied it is not possible to fairly make a determination:\n(A) because of the complexity of the matter; or\n(B) because the prescribed time or any extension of it\nis not sufficient for another reason; or\n\nPart 3 Adjudication of disputes\nDivision 3 Adjudication process\nConstruction Contracts (Security of Payments) Act 2004 18\n(b) otherwise – determine on the balance of probabilities whether\nany party to the payment dispute is liable to make a payment\nor to return any security and, if so, determine:\n(i) the amount to be paid, or security to be returned, and\nany interest payable on it under section 35; and\n(ii) the date on or before which the amount must be paid or\nthe security must be returned.\n(1A) Despite subsection (1)(a), the appointed adjudicator may proceed\nto determine an application that contains technical deficiencies if\nthose deficiencies do not affect the merits of the application, and\nthe Act has been substantially complied with.\n(1B) If the construction contract provides for liquidated damages, an\namount determined under subsection (1)(b) to be payable may\ninclude an amount assessed as liquidated damages.\n(2) If the application is not dismissed or determined under\nsubsection (1) within the prescribed time, or any extension of it\nunder subsection (2B) or section 34(3)(a), the application is taken\nto be dismissed when the time ends.\n(2A) Despite subsection (2), an application is not taken to be dismissed\nwhen the time ends if proceedings have been commenced in the\nSupreme Court in relation to the matter the subject of the\napplication.\n(2B) The appointed adjudicator may, without the consent of the parties,\nextend the prescribed time by an additional 5 working days if the\nadjudicator is satisfied an extension of time is necessary to ensure\nprocedural fairness in the making of a determination.\nNote for subsection (2B)\nThis subsection does not affect the ability of an appointed adjudicator to extend\ntime under section 34(3)(a).\n(3) In this section:\nprescribed time means:\n(a) if the appointed adjudicator is served with a response under\nsection 29(1) – 10 working days after the date of the service of\nthe response; or\n(b) otherwise – 10 working days after the last date on which a\nresponse is required to be served under section 29(1).\n\nPart 3 Adjudication of disputes\nDivision 3 Adjudication process\nConstruction Contracts (Security of Payments) Act 2004 19\n34 Adjudication procedure\n(1) For making a determination, an appointed adjudicator:\n(a) must act informally and if possible make the determination on\nthe basis of:\n(i) the application and its attachments; and\n(ii) if a response has been prepared and served in\naccordance with section 29, the response and its\nattachments; and\n(b) is not bound by the rules of evidence and may inform himself\nor herself in any way the adjudicator considers appropriate.\n(2) In order to obtain sufficient information to make a determination, an\nappointed adjudicator may:\n(a) request a party to make a, or a further, written submission or\nto provide information or documents, and may set a deadline\nfor doing so; or\n(b) request the parties to attend a conference with the adjudicator;\nor\n(c) unless all the parties object:\n(i) inspect any work or thing to which the payment dispute\nrelates, provided the occupier of any place concerned\nconsents to the entry and inspection; or\n(ii) arrange for anything to which the payment dispute\nrelates to be tested, provided the owner of the thing\nconsents to the testing; or\n(iii) engage an expert to investigate and report on any matter\nrelevant to the payment dispute.\n(3) An appointed adjudicator may do any of the following:\n(a) with the Registrar's consent, extend the time for making a\ndetermination under section 33(1);\n(b) if it will not adversely affect the ability of the adjudicator to\nadjudicate the payment disputes – adjudicate simultaneously\n2 or more payment disputes between the same parties;\n\nPart 3 Adjudication of disputes\nDivision 3 Adjudication process\nConstruction Contracts (Security of Payments) Act 2004 20\n(c) if it will not adversely affect the ability of the adjudicator to\nadjudicate the payment disputes – adjudicate the payment\ndispute simultaneously with another payment dispute between\ndifferent parties.\n(4) If an appointed adjudicator adjudicates simultaneously 2 or more\npayment disputes, the adjudicator may, in adjudicating one, take\ninto account information or documents the adjudicator receives in\nrelation to the other and vice versa.\n(5) An adjudicator's power to make a determination is not affected by\nthe failure of either or both of the parties to make a submission or\nprovide information or documents within time or to comply with the\nadjudicator's request to attend a conference with the adjudicator.\n(6) To the extent that the practice and procedure in relation to\nadjudications is not regulated by this Part or the Regulations, an\nappointed adjudicator may determine the adjudicator's own\nprocedure.\n35 Interest until determination\n(1) If an appointed adjudicator determines that a party to a payment\ndispute is liable to make a payment, the adjudicator may also\ndetermine that interest must be paid on:\n(a) if the payment is overdue under the construction contract – the\npayment in accordance with the contract; or\n(b) otherwise – the whole or a part of the payment from the date\nthe payment dispute arose at a rate not greater than the rate\nprescribed by the Regulations until and including the date of\nthe determination.\n(2) Subsection (1) does not authorise the awarding of interest on\ninterest.\n36 Costs of parties to payment disputes\n(1) The parties to a payment dispute bear their own costs in relation to\nan adjudication of the dispute (including the costs the parties are\nliable to pay under section 46).\n(2) However, if an appointed adjudicator is satisfied a party to a\npayment dispute incurred costs of the adjudication because of\nfrivolous or vexatious conduct on the part of, or unfounded\nsubmissions by, another party, the adjudicator may decide that the\nother party must pay some or all of those costs.\n\nPart 3 Adjudication of disputes\nDivision 3 Adjudication process\nConstruction Contracts (Security of Payments) Act 2004 21\n(3) If an appointed adjudicator makes a decision under subsection (2),\nthe adjudicator must:\n(a) decide the amount of the costs and the date on which the\namount is payable; and\n(b) give written notice of the decisions and the reasons for them\nto the parties.\n(4) Divisions 4 and 5 apply (with the necessary changes) to a decision\nmade under subsection (2) as if it were a determination of an\nappointed adjudicator.\n37 Evidentiary value of certificates of completion and amounts\npayable\n(1) This section applies if:\n(a) the construction contract to which a payment dispute relates\nprovides for a person to certify:\n(i) obligations under the contract have been performed; or\n(ii) the amount of a payment that must be made by a party;\nand\n(b) the certificate is provided by a party to an adjudication in the\ncourse of adjudication.\n(2) For the adjudication:\n(a) if the certificate relates to the final amount payable under the\ncontract and has the effect of finalising the contract – the\ncertificate is taken to be conclusive evidence of its contents; or\n(b) otherwise – the certificate has the evidentiary weight the\nappointed adjudicator considers appropriate.\n38 Content of determination\n(1) An appointed adjudicator's decision made under section 33(1)(b)\nmust:\n(a) be in writing; and\n(b) be prepared in accordance with, and contain the information\nprescribed by, the Regulations; and\n\nPart 3 Adjudication of disputes\nDivision 4 Effect of determinations\nConstruction Contracts (Security of Payments) Act 2004 22\n(c) state:\n(i) the amount to be paid and the date on or before which it\nmust be paid; or\n(ii) the security to be returned and the date on or before\nwhich it must be returned; and\n(d) give reasons for the determination; and\n(e) identify any information in it that, because of its confidential\nnature, is not suitable for publication by the Registrar under\nsection 54.\n(2) The adjudicator must give a copy of the decision to the parties to\nthe adjudication and the Registrar.\n39 Dismissed applications\n(1) If, under section 33(1)(a), an appointed adjudicator dismisses an\napplication for adjudication, the adjudicator must give written notice\nof the decision and the reasons for it to the parties and to the\nRegistrar.\n(2) If, under section 33(2), an application for an adjudication of a\npayment dispute is taken to be dismissed:\n(a) this Part does not prevent a further application being made\nunder this Part for an adjudication of the dispute; and\n(b) any further application must be made within 20 working days\nafter the previous application is taken to be dismissed.\n(3) Further, if, under section 33(2), an application for an adjudication of\na payment dispute is taken to be dismissed, the adjudicator must\ngive written notice of the deemed dismissal and reasons for it to the\nRegistrar.\nNote for section 39\nSection 42 of the Northern Territory Civil and Administrative Tribunal Act 2014\ndoes not apply to a deemed dismissal under section 33(2).\nDivision 4 Effect of determinations\n40 Determinations have effect despite other proceedings\nAn appointed adjudicator's determination is binding on the parties to\nthe construction contract under which the payment dispute\nconcerned arose even if other proceedings relating to the payment\ndispute have been started before an arbitrator or other person or a\n\nPart 3 Adjudication of disputes\nDivision 4 Effect of determinations\nConstruction Contracts (Security of Payments) Act 2004 23\ncourt or other body.\n41 Payment of amount determined and interest\n(1) A party that is liable to pay an amount under a determination must\ndo so on or before the date stated in the determination.\n(2) Unless the determination provides otherwise, interest at the rate\nprescribed by the Regulations must be paid on the part of the\namount that is unpaid after the date stated in the determination.\n(3) The interest forms part of the determination.\n(4) If, under section 45(1), a judgment is entered in the terms of a\ndetermination, interest under subsection (2) ceases to accrue.\n42 Progress payment under determination to be on account\n(1) This section applies if:\n(a) an appointed adjudicator:\n(i) determines a payment dispute concerning a claim by a\ncontractor for payment for part performance of its\nobligations under the contract but not for a final payment\nby the principal; and\n(ii) determines that the principal must pay the contractor an\namount for the claim; and\n(b) the principal, in accordance with the determination, pays the\namount.\n(2) Payment of the amount is taken to be an advance towards the total\namount payable under the contract by the principal to the\ncontractor.\n43 Determination final\n(1) If on the adjudication of a payment dispute the appointed\nadjudicator makes a determination:\n(a) the adjudicator cannot subsequently amend or cancel the\ndetermination except with the consent of the parties; and\n(b) a party to the dispute cannot later apply for an adjudication of\nthe dispute.\n\nPart 3 Adjudication of disputes\nDivision 5 Enforcing determinations\nConstruction Contracts (Security of Payments) Act 2004 24\n(2) Despite subsection (1)(a), the adjudicator may, on the application of\na party or, after notifying the parties, on the adjudicator's own\ninitiative, correct any of the following in the determination:\n(a) an accidental slip or omission;\n(b) a material arithmetic error;\n(c) a material mistake in the description of any person, thing or\nmatter.\nDivision 5 Enforcing determinations\n44 Contractor may suspend obligations for principal's non-\ncompliance\n(1) If a determination requires the principal to pay the contractor an\namount and the principal does not pay in accordance with the\ndetermination, the contractor may give the principal written notice of\nthe contractor's intention to suspend the performance of its\nobligations under the contract.\n(2) The notice must:\n(a) be prepared in accordance with, and contain the information\nprescribed by, the Regulations; and\n(b) state the date on which the contractor intends to suspend the\nperformance of its obligations; and\n(c) be given to the principal at least 3 working days before that\ndate.\n(3) If on the date stated in the notice the principal has not paid the\ncontractor the amount in accordance with the determination, the\ncontractor may suspend the performance of its obligations until no\nlonger than 3 working days after the date on which the amount is\npaid.\n(4) Subsection (3) does not prevent the contractor from at any time\nresuming the performance of its obligations.\n(5) A contractor that suspends the performance of its obligations in\naccordance with this section:\n(a) is not liable for any loss or damage suffered by the principal or\nby any person claiming through the principal; and\n(b) retains its rights under the contract, including any right to\nterminate the contract.\n\nPart 3 Adjudication of disputes\nDivision 6 General\nConstruction Contracts (Security of Payments) Act 2004 25\n45 Determination may be enforced as order of court\n(1) A party entitled to be paid an amount under a determination may\nenforce the determination by filing in a court of competent\njurisdiction:\n(a) a copy of the determination that the Registrar has certified to\nbe a true copy; and\n(b) an affidavit as to the amount not paid under the determination.\n(2) On filing a copy of the determination under subsection (1), the\ndetermination is taken to be an order of the court, and may be\nenforced accordingly.\n(3) This section applies regardless of whether the determination is\nmade before or after the commencement of this subsection.\nDivision 6 General\n46 Costs of adjudications\n(1) This section applies if:\n(a) an adjudicator is appointed to adjudicate a payment dispute;\nand\n(b) one of the following applies:\n(i) the party who applied for the adjudication withdraws the\napplication under section 28A;\n(ii) the adjudicator dismisses the application for adjudication\nunder section 33(1)(a);\n(iii) the adjudicator makes a determination of the dispute\nunder section 33(1)(b).\n(1A) The adjudicator is entitled:\n(a) to be paid for the adjudicator's work:\n(i) at a rate agreed between the adjudicator and the parties\nthat is not more than the maximum rate prescribed by\nthe Regulations; or\n(ii) if a rate is not agreed – at the rate published under\nsection 55 for the adjudicator; and\n\nPart 3 Adjudication of disputes\nDivision 6 General\nConstruction Contracts (Security of Payments) Act 2004 26\n(b) to be reimbursed any expenses reasonably incurred in\nconnection with the work.\n(2) An appointed adjudicator who is disqualified under section 31 has\nthe entitlements in subsection (1A) for any adjudication work done\nbefore the disqualification is notified to the parties.\n(3) Despite subsection (1A), an appointed adjudicator may refuse to\ngive notice of the adjudicator's decision or determination under\nsection 33(1) or 36(2) or subsection (9) until the adjudicator has\nbeen paid and reimbursed in accordance with subsection (1A).\n(4) The parties involved in a payment dispute are jointly and severally\nliable to pay the costs of an adjudication of the dispute.\n(5) As between themselves, the parties involved in a dispute are liable\nto pay the costs of an adjudication of the dispute in equal shares.\n(6) Subsections (4) and (5) do not prevent a decision being made\nunder section 36(2).\n(7) An appointed adjudicator may at any time require one or more\nparties to provide a reasonable deposit, or reasonable security, for\nthe costs or anticipated costs of the adjudication.\n(8) A prescribed appointer, before appointing an adjudicator, may\nrequire the applicant for adjudication to provide a deposit, or\nreasonable security, for the costs or anticipated costs of the\nadjudication.\n(9) If a party involved in a dispute has paid more than the party's share\nof the costs of an adjudication of the dispute, having regard to\nsubsection (5), the appointed adjudicator may decide that another\nparty must pay to the first party the amount of the costs that would\nresult in all the parties paying an equal amount of the costs.\n(10) If an appointed adjudicator makes a decision under subsection (9):\n(a) the adjudicator must include in the decision the date on which\nthe amount is payable; and\n(b) Divisions 4 and 5 apply (with the necessary changes) to the\ndecision as if it were a determination of an appointed\nadjudicator.\n(11) An appointed adjudicator may recover the costs of an adjudication\nfrom a person liable to pay the costs in a court of competent\njurisdiction as if the costs were a debt due to the adjudicator.\n\nPart 4 Administration\nDivision 1 Construction Contracts Registrar\nConstruction Contracts (Security of Payments) Act 2004 27\n(12) In this section:\ncosts of an adjudication means:\n(a) the entitlements of the appointed adjudicator under\nsubsection (1A); and\n(b) the costs of any testing done, or of any expert engaged, under\nsection 34(2)(c)(ii) or (iii).\n47 Effect of this Part on civil proceedings\n(1) This Part does not prevent a party to a construction contract from\nstarting proceedings before an arbitrator or other person or a court\nor other body in relation to a dispute or other matter arising under\nthe contract.\n(2) If other proceedings are started in relation to a payment dispute that\nis being adjudicated under this Part, the adjudication must proceed\ndespite the proceedings unless all of the parties, in writing, require\nthe appointed adjudicator to discontinue the adjudication.\n(3) Evidence of anything said or done in an adjudication is not\nadmissible before an arbitrator or other person or a court or other\nbody, except for an application made under section 31(3) or a\nreview of a decision made under section 33(1)(a).\n(4) An arbitrator or other person or a court or other body dealing with a\nmatter arising under a construction contract:\n(a) must, in making any award, judgment or order, allow for any\namount that has been or must be paid to a party under a\ndetermination of a payment dispute arising under the contract;\nand\n(b) may make an order for the restitution of the amount paid and\nany other appropriate order relating to the determination.\nPart 4 Administration\nDivision 1 Construction Contracts Registrar\n49 Registrar\n(1) There is to be a Construction Contracts Registrar.\n(2) The Minister must, by Gazette notice, appoint a person to be the\nRegistrar.\n\nPart 4 Administration\nDivision 1 Construction Contracts Registrar\nConstruction Contracts (Security of Payments) Act 2004 28\n50 Provisions relating to appointment of non-public sector\nemployee\n(1) This section applies if the person appointed to be the Registrar is\nnot a public sector employee.\n(2) The Registrar holds office for the period (not exceeding 5 years)\nstated in the appointment and is eligible for re-appointment.\n(3) The Registrar holds office on the conditions (including conditions\nabout remuneration, expenses and allowances) determined by the\nMinister.\n(4) The Minister must terminate the appointment of a person as\nRegistrar if the person:\n(a) is found guilty of an indictable offence, whether in the Territory\nor elsewhere; or\n(b) becomes bankrupt, applies to take the benefit of a law for the\nrelief of bankrupt or insolvent debtors, compounds with\ncreditors or makes an assignment of remuneration for their\nbenefit; or\n(c) engages in paid employment outside the duties of the office\nwithout the Minister's prior written approval.\n(5) The Minister may terminate the appointment of a person as\nRegistrar:\n(a) on the ground of misbehaviour; or\n(b) on the ground of inability to satisfactorily perform the duties of\nthe office, whether because of physical or mental incapacity or\nfor any other reason; or\n(c) if the person is guilty of misconduct of a kind that would, if the\nperson were a public sector employee, warrant dismissal\nunder that Act; or\n(d) if the person is absent, without leave and without reasonable\nexcuse, for 14 consecutive days or 28 days in any 12 months.\n(6) A termination under subsection (4) or (5) must be given in writing to\nthe person.\n(7) The Minister may grant leave of absence to the Registrar on the\nterms the Minister considers appropriate.\n\nPart 4 Administration\nDivision 2 Adjudicators and prescribed appointers\nConstruction Contracts (Security of Payments) Act 2004 29\n(8) The Registrar may resign from office by written notice given to the\nMinister.\n51 Functions\nThe Registrar has the functions conferred by this Act.\nDivision 2 Adjudicators and prescribed appointers\n52 Registering adjudicators\n(1) An individual is eligible to be a registered adjudicator if the person\nhas the qualifications and experience prescribed by the\nRegulations.\n(2) The Registrar may register a person as a registered adjudicator:\n(a) on the application of the person; or\n(b) on the nomination of a prescribed appointer.\n(3) The Registrar may refuse to register a person as a registered\nadjudicator if the person is not eligible to be registered.\n(4) The Registrar may renew the registration of a person who is a\nregistered adjudicator within the period determined by the Registrar\nbefore the registration expires:\n(a) on the application of the person; or\n(b) on the nomination of a prescribed appointer.\n(4A) The Registrar may refuse to renew a person's registration as a\nregistered adjudicator if the person is no longer eligible to be\nregistered.\n(4B) A registration or renewal of a registration under this section, unless\nsooner cancelled, remains in force for a period of 5 years.\n(4C) The Regulations may prescribe the following:\n(a) any information to be included in an application or nomination\nunder this section;\n(b) a fee to be paid for making an application or nomination under\nthis section.\n\nPart 4 Administration\nDivision 2 Adjudicators and prescribed appointers\nConstruction Contracts (Security of Payments) Act 2004 30\n(5) The Registrar may cancel a person's registration as a registered\nadjudicator if satisfied the person:\n(a) has ceased to be eligible to be registered; or\n(b) has misconducted, or is incompetent or unsuitable to conduct,\nadjudications under Part 3.\n(6) The Registrar must keep a register of registered adjudicators and\nmake it available for public inspection at no charge.\n53A Adjudicators to give Registrar information\nA registered adjudicator must, in accordance with the Regulations,\ngive the Registrar information prescribed by the Regulations.\n54 Publication of adjudicators' decisions\n(1) The Registrar must make available for public inspection at no\ncharge the result or a report of the decisions of registered\nadjudicators.\n(2) The Registrar must ensure there is not included in the result or\nreport made available under subsection (1):\n(a) the identities of the parties to the adjudication; or\n(b) any information in the determination identified under\nsection 38(1)(e) as being not suitable for publication because\nof its confidential nature.\n(3) The Registrar may provide relevant information regarding the result\nor a report of the decision of a registered adjudicator to a related\nregulatory body.\nExample for subsection (3)\nThe following are examples of related regulatory bodies:\n(a) the Australian Building and Construction Commissioner established under the\nBuilding and Construction Industry (Improving Productivity) Act 2016 (Cth);\n(b) the Director of Building Control appointed under section 7 of the\nBuilding Act 1993.\n55 Adjudicators' and prescribed appointers' rates to be published\n(1) A registered adjudicator or prescribed appointer must ensure the\nrate at which the adjudicator or appointer charges for work under\nthis Act is published in a way approved by the Registrar.\n\nPart 5 Review by NTCAT\nConstruction Contracts (Security of Payments) Act 2004 31\n(2) Subsection (1) does not prevent any of the parties from agreeing on\nthe rate to be charged by a registered adjudicator or prescribed\nappointer for work under this Act.\n(3) The published or agreed rate must not be more than the maximum\nrate prescribed by the Regulations.\nDivision 3 Miscellaneous provisions\n56 Protection from liability\n(1) This section applies to a person who is or has been:\n(a) an appointed adjudicator; or\n(b) a prescribed appointer; or\n(c) the Registrar.\n(2) The person is not civilly or criminally liable for an act done or\nomitted to be done by the person in good faith in the exercise or\npurported exercise of a power, or the performance or purported\nperformance of a function, under this Act.\n(3) Subsection (2) does not affect any liability the Territory would, apart\nfrom that subsection, have for the act or omission.\n57 Evidentiary provisions\n(1) A document purporting to be signed by the Registrar is taken to\nhave been signed by the person who was at the time duly\nappointed as the Registrar in the absence of evidence to the\ncontrary.\n(2) A certificate by the Registrar stating a person was or was not at a\ntime or in a period, or is or is not, a registered adjudicator is proof of\nthe content of the certificate in the absence of evidence to the\ncontrary.\nPart 5 Review by NTCAT\n58 Review by NTCAT\n(1) NTCAT has jurisdiction to review a decision (a reviewable\ndecision) specified in Schedule 2.\n(2) An affected person, for a reviewable decision, is a person\nspecified in Schedule 2 for the decision.\n\nPart 6 Miscellaneous provisions\nConstruction Contracts (Security of Payments) Act 2004 32\n(3) An affected person for a reviewable decision may apply to NTCAT\nfor review of the decision.\n(4) Subsection 5 applies if, on the review of a decision made under\nsection 33(1)(a), the decision is set aside and referred back to the\nappointed adjudicator under section 50(1)(c) of the Northern\nTerritory Civil and Administrative Tribunal Act 2014 for\nreconsideration.\n(5) The adjudicator must make a determination under section 33(1)(b)\nwithin 10 working days after the date on which the decision is set\naside or any extension of that time as permitted under this Act.\nNote for section 58\nThe Northern Territory Civil and Administrative Tribunal Act 2014 sets out the\nprocedure for applying to NTCAT for review and other relevant matters in relation\nto reviews.\nPart 6 Miscellaneous provisions\n63 Annual report\n(1) The Chief Executive Officer of the Agency administering this Act\nmust include in the Agency's annual report for each financial year a\nreport about the operation and effectiveness of this Act for the year.\n(2) In this section:\nannual report means the annual report mentioned in section 28 of\nthe Public Sector Employment and Management Act 1993.\n64 Regulations\n(1) The Administrator may make regulations, not inconsistent with this\nAct, prescribing matters:\n(a) required or permitted to be prescribed; or\n(b) necessary or convenient to be prescribed for carrying out or\ngiving effect to this Act.\n(2) The Regulations may provide for any of the following:\n(a) fees payable, and the refund (wholly or partly) of fees paid,\nunder this Act;\n(b) the practice and procedure in adjudications.\n\nPart 7 Repeals and transitional matters\nDivision 2 Transitional matters for Justice Legislation Amendment Act 2006\nConstruction Contracts (Security of Payments) Act 2004 33\n(3) The Regulations may:\n(a) make different provision in relation to:\n(i) different persons or matters; or\n(ii) different classes of persons or matters; or\n(b) apply differently by reference to stated exceptions or factors.\n65 Review of Act\nThe Minister must, as soon as practicable, conduct a review of the\nfirst 5 years of operation of this Act.\nPart 7 Repeals and transitional matters\nDivision 1 Repeals\n66 Repeal of Workmen's liens legislation\nThe following Acts are repealed:\n(a) Act No. 575 of 1893 (SA) as it applies in the Territory;\n(b) the Workmen's Liens Amendment Act 2002 (Act No. 17,\n2002).\nDivision 2 Transitional matters for Justice Legislation\nAmendment Act 2006\n67 Transitional provision\n(1) This section applies to a contract made before the repeal of the\nrepealed Act.\n(2) The repealed Act continues to apply to the contract as if it had not\nbeen repealed.\n(3) This section does not limit section 12 of the Interpretation Act 1978.\n(4) In this section:\nrepealed Act means the Workmen's Liens Act 1893 as in force\nimmediately before the commencement of section 66.\n\nPart 7 Repeals and transitional matters\nDivision 3 Transitional matters for Construction Contracts (Security of Payments)\nLegislation Amendment Act 2019\nConstruction Contracts (Security of Payments) Act 2004 34\nDivision 3 Transitional matters for Construction Contracts\n(Security of Payments) Legislation Amendment\nAct 2019\n68 Existing payment claims\n(1) A payment claim that, on the commencement, had not been\ndecided continues to be dealt with under this Act as it was in force\nimmediately before the commencement.\n(2) In this section:\ncommencement means the commencement of section 8 of the\nConstruction Contracts (Security of Payments) Legislation\nAmendment Act 2019.\n69 Registration of adjudicators\n(1) A person who, immediately before the commencement, is\nregistered as an adjudicator continues to be registered as an\nadjudicator for 5 years after the commencement.\n(2) Before the expiry of the period mentioned in subsection (1), the\nRegistrar may renew the registration of a person who is a\nregistered adjudicator in accordance with section 52(4).\n(3) In this section:\ncommencement means the commencement of section 23 of the\nConstruction Contracts (Security of Payments) Legislation\nAmendment Act 2019.\n\nSchedule 1 Implied provisions\nConstruction Contracts (Security of Payments) Act 2004 35\nSchedule 1 Implied provisions\nsections 16 to 24\nDivision 1 Variations\n1 Variations must be agreed\nThe contractor is not bound to perform any variation of its\nobligations unless the contractor and the principal have agreed on:\n(a) the nature and extent of the variation of the obligations; and\n(b) the amount, or a way of calculating the amount, that the\nprincipal must pay the contractor in relation to the variation of\nthe obligations.\nDivision 2 Contractor's entitlement to be paid\n2 Contractor entitled to be paid\n(1) The contractor is entitled to be paid a reasonable amount for\nperforming its obligations.\n(2) Subclause (1) applies whether or not the contractor performs all of\nits obligations.\nDivision 3 Claims for progress payments\n3 Entitlement to make claim\nThe contractor is entitled to make one or more claims for a progress\npayment in relation to the contractor's obligations it has performed\nand for which it has not been paid by the principal.\n4 When claim can be made\n(1) A claim by the contractor for a progress payment can be made at\nany time after the contractor has performed any of its obligations.\n(2) The making of a claim for a progress payment does not prevent the\ncontractor from making another claim for an amount payable to the\ncontractor under or in connection with this contract.\n\nSchedule 1 Implied provisions\nConstruction Contracts (Security of Payments) Act 2004 36\nDivision 4 Making claims for payment\n5 Content of claim for payment\n(1) A payment claim under this contract must:\n(a) be in writing; and\n(b) be addressed to the party to which the claim is made; and\n(c) state the name of the claimant; and\n(d) state the date of the claim; and\n(e) state the amount claimed; and\n(f) for a claim by the contractor – itemise and describe the\nobligations the contractor has performed and to which the\nclaim relates in sufficient detail for the principal to assess the\nclaim; and\n(g) for a claim by the principal – describe the basis for the claim in\nsufficient detail for the contractor to assess the claim; and\n(i) be given to the party to which the claim is made.\n(2) For a claim by the contractor, the amount claimed must be\ncalculated in accordance with this contract or, if this contract does\nnot provide a way of calculating the amount, the amount claimed\nmust be:\n(a) if this contract states that the principal must pay the contractor\none amount (the contract sum) for the performance by the\ncontractor of all of its obligations under this contract (the total\nobligations) – the proportion of the contract sum that is equal\nto the proportion that the obligations performed and detailed in\nthe claim are of the total obligations; or\n(b) if this contract states that the principal must pay the contractor\nin accordance with rates stated in this contract – the value of\nthe obligations performed and detailed in the claim calculated\nby reference to the rates; or\n(c) otherwise – a reasonable amount for the obligations\nperformed and detailed in the claim.\n(3) Subclause (2) does not prevent the amount claimed in a progress\nclaim from being an aggregate of amounts calculated under one or\nmore of subclause (2)(a), (b) and (c).\n\nSchedule 1 Implied provisions\nConstruction Contracts (Security of Payments) Act 2004 37\nDivision 5 Responding to payment claims\n6 Responding to payment claim by notice of dispute or payment\n(1) This clause applies if:\n(a) a party receives a payment claim under this contract; and\n(b) the party:\n(i) believes the claim should be rejected because the claim\nhas not been made in accordance with this contract; or\n(ii) disputes the whole or part of the claim.\n(2) The party must:\n(a) within 10 working days after receiving the payment claim:\n(i) give the claimant a notice of dispute; and\n(ii) if the party disputes part of the claim – pay the amount of\nthe claim that is not disputed; or\n(b) within 20 working days after receiving the payment claim, pay\nthe whole of the amount of the claim.\n(3) The notice of dispute must:\n(a) be in writing; and\n(b) be addressed to the claimant; and\n(c) state the name of the party giving the notice; and\n(d) state the date of the notice; and\n(e) identify the claim to which the notice relates; and\n(f) if the claim is being rejected under subclause (1)(b)(i) – state\nthe reasons for believing the claim has not been made in\naccordance with this contract; and\n(g) if the claim is being disputed under subclause (1)(b)(ii) –\nidentify each item of the claim that is disputed and state, for\neach of the items, the reasons for disputing it; and\n(h) be signed by the party giving the notice.\n\nSchedule 1 Implied provisions\nConstruction Contracts (Security of Payments) Act 2004 38\n(4) If under this contract the principal is entitled to retain part of an\namount payable by the principal to the contractor:\n(a) subclause (2)(b) does not affect the entitlement; and\n(b) the principal must advise the contractor in writing (either in a\nnotice of dispute or separately) of an amount retained under\nthe entitlement.\nDivision 6 Interest on overdue payments\n7 Interest payable on overdue payments\n(1) Interest is payable on the part of an amount that is payable under\nthis contract by a party to another party on or before a certain date\nbut which is unpaid after that date.\n(2) The interest must be paid for the period beginning on the day after\nthe date on which the amount is due and ending on and including\nthe date on which the amount payable is paid.\n(3) The rate of interest at any time is equal to that prescribed by the\nRegulations for that time.\nDivision 7 Ownership of goods\n8 When ownership of goods supplied by contractor passes\n(1) Subclause (2) applies to goods that are:\n(a) related to construction work; and\n(b) supplied to the site of the construction work by the contractor\nunder its obligations under this contract.\n(2) The ownership of the goods passes from the contractor when\nwhichever of the following happens first:\n(a) the contractor is paid for the goods;\n(b) the goods become fixtures.\n\nSchedule 1 Implied provisions\nConstruction Contracts (Security of Payments) Act 2004 39\nDivision 8 Duties about unfixed goods on insolvency\n9 Duties of principal and other persons about unfixed goods on\ninsolvency\n(1) This clause applies if:\n(a) goods that are related to construction work have been\nsupplied to the site of the construction work by the contractor\nunder its obligations under this contract; and\n(b) the contractor has not been paid for the goods; and\n(c) the goods have not become fixtures; and\n(d) ownership of the goods has not passed from the contractor;\nand\n(e) the goods are in the possession of or under the control of:\n(i) the principal; or\n(ii) a person for whom, directly or indirectly, the principal is\nperforming construction work or to whom, directly or\nindirectly, the principal is supplying goods or services\nthat are related to construction work; and\n(f) the principal or that person becomes an insolvent.\n(2) The principal and the person must not, during the insolvency, allow\nthe goods to become fixtures or to fall into the possession of or\nunder the control of another person (other than the contractor)\nexcept with the prior written consent of the contractor.\n(3) In addition, the principal and the person must allow the contractor a\nreasonable opportunity to repossess the goods.\n(4) In this clause:\ninsolvent means:\n(a) for an individual – an insolvent under administration as defined\nin section 9 of the Corporations Act 2001; or\n(b) for a body corporate – an externally-administered body\ncorporate as defined in section 9 of the Corporations\nAct 2001.\n\nSchedule 1 Implied provisions\nConstruction Contracts (Security of Payments) Act 2004 40\nDivision 9 Retention money\n10 Retention money to be held on trust\nIf the principal retains from an amount payable by the principal to\nthe contractor for the performance by the contractor of its\nobligations part of that amount (the retention money), the principal\nholds the retention money on trust for the contractor until whichever\nof the following happens first:\n(a) the retention money is paid to the contractor;\n(b) the contractor agrees in writing to give up any claim to the\nretention money;\n(c) the retention money ceases to be payable to the contractor\nunder this contract;\n(d) an adjudicator, arbitrator or other person or a court or other\nbody decides the retention money ceases to be payable to the\ncontractor.\n\nSchedule 2 Reviewable decisions and affected persons\nConstruction Contracts (Security of Payments) Act 2004 41\nSchedule 2 Reviewable decisions and affected persons\nsection 58\nReviewable decision Affected person\nA decision of the Registrar under\nsection 31(3) to make a declaration to\ndisqualify an appointed adjudicator\nThe appointed adjudicator or a\nparty to the payment dispute\nA decision of an appointed adjudicator\nunder section 33(1)(a) to dismiss an\napplication\nThe applicant\nA decision of the Registrar under\nsection 52(3) to refuse to register a\nperson\nThe applicant or the nominator\nA decision of the Registrar under\nsection 52(4A) to refuse to renew a\nregistration\nThe applicant or the nominator\nA decision of the Registrar under\nsection 52(5) to cancel a person's\nregistration\nThe registered adjudicator\n\nENDNOTES\nConstruction Contracts (Security of Payments) Act 2004 42\nENDNOTES\n1 KEY\nKey to abbreviations\namd = amended od = order\napp = appendix om = omitted\nbl = by-law pt = Part\nch = Chapter r = regulation/rule\ncl = clause rem = remainder\ndiv = Division renum = renumbered\nexp = expires/expired rep = repealed\nf = forms s = section\nGaz = Gazette sch = Schedule\nhdg = heading sdiv = Subdivision\nins = inserted SL = Subordinate Legislation\nlt = long title sub = substituted\nnc = not commenced\n2 LIST OF LEGISLATION\nConstruction Contracts (Security of Payments) Act 2004 (Act No. 66, 2004)\nAssent date 21 December 2004\nCommenced s 66: 1 August 2006 (Gaz G27, 5 July 2006, p 2);\nrem:1 July 2005 (Gaz G21, 25 May 2005, p 3)\nCommunity Justice Centre Act 2005 (Act No. 40, 2005)\nAssent date 13 December 2005\nCommenced 22 February 2006 (Gaz G8, 22 February 2006, p 5)\nJustice Legislation Amendment Act 2006 (Act No. 13, 2006)\nAssent date 18 May 2006\nCommenced ss 13 and 14: 1 August 2006; rem: 18 May 2006 (Gaz G27,\n5 July 2006, p 2)\nJustice Legislation Amendment Act (No. 2) 2007 (Act No. 32, 2007)\nAssent date 12 December 2007\nCommenced 8 January 2008 (Gaz S2, 8 January 2008)\nJustice and Other Legislation Amendment Act 2009 (Act No. 12, 2009)\nAssent date 26 May 2009\nCommenced 24 June 2009 (Gaz G25, 24 June 2009, p 2)\nStatute Law Revision Act 2011 (Act No. 30, 2011)\nAssent date 31 August 2011\nCommenced 21 September 2011 (Gaz G38, 21 September 2011, p 5)\nStatute Law Revision Act 2014 (Act No. 38, 2014)\nAssent date 13 November 2014\nCommenced 13 November 2014\n\nENDNOTES\nConstruction Contracts (Security of Payments) Act 2004 43\nConstruction Contracts (Security of Payments) Legislation Amendment Act 2019 (Act\nNo. 27, 2019)\nAssent date 3 September 2019\nCommenced 3 February 2020 (Gaz G51, 18 December 2019, p 2)\nJustice and Other Legislation Further Amendment Act 2024 (Act No. 9, 2024)\nAssent date 24 May 2024\nCommenced pts 4 and 8: nc; pts 9 and 10: 1 July 2024 (s 2(3));\nrem: 25 May 2024 (s 2(1))\n3 GENERAL AMENDMENTS\nGeneral amendments of a formal nature (which are not referred to in the table\nof amendments to this reprint) are made by the Interpretation Legislation\nAmendment Act 2018 (Act No. 22 of 2018) to: ss 1, 4, 11A, 25, 63 and 67.\n4 LIST OF AMENDMENTS\npt 1 hdg amd No. 30, 2011, s 3\ns 3 amd No. 30, 2011, s 3\ns 4 amd No. 30, 2011, s 3; No. 27, 2019, s 4; No. 9, 2024, s 8\ns 4A ins No. 27, 2019, s 5\ns 5 amd No. 27, 2019, s 6\ns 6 amd No. 30, 2011, s 3; No. 27, 2019, s 7\ns 7 amd No. 30, 2011, s 3\ns 7A ins No. 27, 2019, s 8\ns 8 amd No. 30, 2011, s 3; No. 38, 2014, s 2\ns 9 amd No. 30, 2011, s 3\ns 10 amd No. 27, 2019, s 9\ns 10A ins No. 27, 2019, s 10\ns 11A ins No. 40, 2005, s 43\ns 13 amd No. 27, 2019, s 32\nss 16 – 24 amd No. 27, 2019, s 32\ns 25 amd No. 30, 2011, s 3\ns 27 amd No. 12, 2009, s 4; No. 27, 2019, s 11\ns 28 amd No. 32, 2007, s 4; No. 30, 2011, s 3; No. 27, 2019, s 12\ns 28A ins No. 32, 2007, s 5\ns 29 amd No. 30, 2011, s 3; No. 27, 2019, s 13\ns 30 amd No. 30, 2011, s 3; No. 27, 2019, s 14\ns 31 amd No. 12, 2009, s 5; No. 30, 2011, s 3; No. 27, 2019, ss 15 and 32\ns 32 rep No. 27, 2019, s 16\ns 33 amd No. 27, 2019, s 17\ns 34 amd No. 30, 2011, s 3; No. 27, 2019, s 18\ns 36 amd No. 32, 2007, s 6\ns 38 amd No. 30, 2011, s 3\ns 39 amd No. 32, 2007, s 7; No. 27, 2019, s 19\ns 44 amd No. 30, 2011, s 3\ns 45 amd No. 13, 2006, s 12\nsub No. 27, 2019, s 20\ns 46 amd No. 32, 2007, s 8; No. 30, 2011, s 3\ns 47 amd No. 27, 2019, s 21\ns 48 rep No. 27, 2019, s 22\nss 49 – 50 amd No. 30, 2011, s 3\ns 52 amd No. 30, 2011, s 3; No. 27, 2019, s 23\ns 53 rep No. 27, 2019, s 24\n\nENDNOTES\nConstruction Contracts (Security of Payments) Act 2004 44\ns 53A ins No. 40, 2005, s 44\ns 54 amd No. 27, 2019, s 25\ns 56 amd No. 30, 2011, s 3\npt 5 hdg sub No. 27, 2019, s 26\ns 58 sub No. 27, 2019, s 26\ns 59 – 62 rep No. 27, 2019, s 26\ns 62 amd No. 30, 2011, s 3\npt 7 hdg sub No. 13, 2006, s 13\npt 7\ndiv 1 hdg ins No. 27, 2019, s 27\npt 7\ndiv 2 hdg ins No. 27, 2019, s 28\ns 67 ins No. 13, 2006, s 14\npt 7\ndiv 3 hdg ins No. 27, 2019, s 29\nss 68 – 69 ins No. 27, 2019, s 29\nsch 1 amd No. 32, 2007, s 9; No. 30, 2011, s 3; No. 27, 2019, s 30\nsch 2 ins No. 27, 2019, s 31","sortOrder":0}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":true,"description":"The original 2004 Act was a straightforward security of payments regime. The 2019 amendments significantly expanded the scope by introducing 'high value construction contracts' (section 4A) that can contract out of the statutory adjudication scheme, effectively creating a two-tier system. It also added new grounds for adjudicators to dismiss applications (complexity, insufficient time), expanded the Registrar's powers regarding adjudicator registration, and introduced new interaction provisions with the Community Justice Centre. The 2024 amendments further refined the adjudication process and NTCAT review mechanisms. The legislation has evolved from a simple 'no contracting out' model to a more nuanced, conditional framework with multiple pathways depending on contract value and dispute characteristics."},"complexity_factors":["Extensive cross-referencing between Parts and Schedule 1 (implied provisions are not in the main body but in a Schedule that modifies contract interpretation)","Multiple conditional triggers for adjudication dismissal (section 33(1)(a) lists 5 separate dismissal grounds, some with nested sub-conditions)","Complex transitional provisions spanning three separate amendment Acts (2006, 2019, 2024) with different commencement triggers","Interaction with external legislation (Fair Work Act 2009, Corporations Act 2001, Community Justice Centre Act 2005, NTCAT Act 2014) requiring knowledge of those regimes","Dual-track system for high value contracts (section 10A creates an opt-out mechanism with its own conditions) versus standard contracts","Time calculation rules with multiple exceptions (e.g., section 33(2B) allows 5-day extensions; section 39(2) creates 20-day revival periods; section 28A creates tolling provisions for disqualification)","27 defined terms in section 4, plus additional defined terms scattered throughout (e.g., 'prescribed employee' in section 9, 'commencement' in sections 10A and 68)","Schedule 2 creates a separate administrative review jurisdiction with specific 'affected persons' mapping"],"plain_english_summary":"**What this law does:**\n\nThis is the Northern Territory's \"Security of Payments\" law. It creates a fast-track system to make sure builders, subcontractors, and suppliers in the construction industry get paid on time — and have a quick way to fight back if they don't.\n\n**Who it affects:**\n\n*   **Contractors** — anyone doing construction work, supplying materials, or providing related professional services (like architects or engineers).\n*   **Principals** — the people or companies hiring the contractors (property owners, developers, head contractors).\n*   **Adjudicators** — specially registered experts who decide payment disputes quickly.\n\n**Key protections:**\n\n*   **No \"pay when paid\" clauses** — A contractor can't be forced to wait until the principal gets paid by someone else before they receive their money (section 12).\n*   **30-day payment rule** — If a contract tries to allow payment later than 30 working days after a claim, the law automatically cuts it back to 30 days (section 13).\n*   **Automatic contract terms** — If a written contract is missing key terms about variations, progress payments, interest on late payments, or ownership of goods, the law fills in the gaps with fair default rules (Schedule 1).\n*   **Retention money held in trust** — Any money held back as \"security\" for work quality must be held on trust for the contractor until it's paid out or legally forfeited (Schedule 1, clause 10).\n\n**The adjudication system (the \"rapid resolution\"):**\n\nIf there's a fight about money, either party can apply for **adjudication** — a quick, informal process where a registered adjudicator decides who owes what. The adjudicator must usually decide within 10 working days. The decision is binding and can be enforced like a court order. Crucially, a contractor can suspend work if the principal ignores the adjudicator's decision (section 44).\n\n**Important exceptions:**\n\n*   **High value contracts** (worth more than a regulated amount) can opt out of the adjudication system if they have their own dispute resolution mechanism (section 10A).\n*   The law applies to oral contracts and contracts governed by other states' laws, as long as the work is in the NT (section 9).\n*   It doesn't cover employees working under industrial awards (section 9(3)).\n\n**Why it matters:**\n\nConstruction is notorious for cash-flow problems and \"phoenixing\" (where companies collapse owing money). This law gives tradies and small subcontractors a weapon to get paid quickly without expensive court battles, while still allowing the courts to sort out the final rights later if needed."},"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":true,"description":"The Act’s scope has been materially adjusted by later amendments—most notably the introduction of a regulated exception allowing parties to a high value construction contract to agree to alternative adjudication procedures (s 10A) and the introduction of registration and publication regimes for adjudicators (s 4A; ss 52, 53A, 54). These changes (tracked in the amendment notes and transitional provisions ss 68–69) narrow the Act’s mandatory reach for certain contracts while adding administrative layers (registration, published rates and anonymised decision reports) that affect who decides disputes and how the scheme operates."},"complexity_factors":["Extensive definitions and scope rules distinguishing construction work, related goods/services and payment claims (ss 5–7A)","Multiple, short statutory time limits for applications, responses and determinations that create sequencing pressure (ss 28(1), 29(1), 33(3))","Interplay between statutory prohibitions on contractual terms and implied default provisions inserted into contracts (ss 10–16; Schedule 1)","Administrative architecture with multiple decision‑makers (parties, appointed adjudicators, prescribed appointers, Registrar) and powers to register, appoint and remove adjudicators (ss 28, 30, 31, 49–52)","Cost and security rules that allow deposits, published/adjudicator rates and joint/several cost liability, creating pre‑payment and allocation issues (s 46; s 55)","Enforcement path combining administrative determinations with court filing and suspension remedies (ss 41–45, 44)","Significant delegated rule‑making power to make Regulations that materially affect scope and procedure (s 64) and the 2019 amendments introducing exceptions (s 10A)","Interaction with other statutes and review routes (Community Justice Centre Act s 11A; NTCAT review s 58), increasing cross‑instrument complexity"],"plain_english_summary":"Mechanically, this Act creates a statutory process that: (a) defines what counts as a \"construction contract\", construction work, related goods and services, and a \"payment claim\" (see ss 5–7A); (b) prevents certain contract terms and implies minimum contract terms about payment, variations, retention money, ownership of goods and insolvency (see ss 10–16, Schedule 1); (c) sets out a fast, largely paper-based adjudication procedure for payment disputes with strict time limits, appointing and remunerating adjudicators, and requirements for applications, responses and determinations (see Part 3, especially ss 27–34 and 38); and (d) provides enforcement tools (suspension of work, court enforcement of adjudicator determinations) and administrative institutions (a Registrar, a register of adjudicators, publication rules) to operate the scheme (see ss 44–46 and 49–55).\n\nThe Act says its objective is to promote security of payments in construction by facilitating timely payments, rapid dispute resolution and rapid recovery of payments (s 3). It implements that objective through the mechanisms above: banning \"pay if paid/pay when paid\" clauses (s 12), capping payment time at 30 working days for clauses that require later payment (s 13), implying standard procedures for payment claims and responses (Schedule 1, cl 5–6), and providing a short-window adjudication process (application within 65 working days of a dispute arising (s 28(1)); respondent must reply within 15 working days (s 29(1)); adjudicator must determine in around 10 working days from receipt of response (s 33(3))).\n\nWho pays, who decides, and what behaviour changes\n- Who pays: the party ordered by an adjudicator to pay (s 33(1)(b)). If unpaid, the amount can be enforced by filing the certified determination in court (s 45). Parties are jointly and severally liable for the costs of an adjudication (s 46(4)), though the adjudicator can re-allocate shares between parties (s 46(9)–(10)).\n- Who decides: registered adjudicators appointed by the parties or by a prescribed appointer or the Registrar (ss 28(1)(c), 30). The Registrar also registers and may cancel adjudicators (s 52), publishes anonymised results (s 54) and can appoint an adjudicator if an appointer fails to do so (s 30(2)–(3)).\n- Behaviour changes the law induces: contractors and principals must follow the statutory rules for making and responding to payment claims (Schedule 1, cl 5–6; s 7A); parties lose the ability to rely on certain contractual protection devices (e.g. \"pay if paid\" clauses—s 12) but can (subject to regulation) use different dispute resolution if the contract is a high value construction contract and meets regulatory requirements (s 10A). A contractor who obtains an unpaid determination may suspend work after giving notice (s 44).\n\nImplementation, compliance and discretion points (source-grounded)\n- Tight statutory timeframes create a predictable but compressed process: applications within 65 working days of dispute (s 28(1)); responses in 15 working days (s 29(1)); adjudicator determination normally within 10 working days after receiving the response (s 33(3)). The adjudicator may extend short additional periods in limited circumstances (s 33(2B); s 34(3)(a)).\n- Administrative discretion sits with the Registrar and prescribed appointers: they register, appoint and may remove adjudicators (ss 30, 31, 49–52). The Registrar also publishes anonymised decision reports (s 54) and maintains the register (s 52(6)). Regulations can add or exempt classes of contracts, prescribe qualifications, fees and practice and procedure (ss 9(4); 52(4C); 64).\n- Cost and security mechanisms: adjudicators are paid either by agreement or at a published rate up to a regulatory maximum (s 46(1A); s 55). Adjudicators or appointers may require deposits/security for expected costs (s 46(7)–(8)). Parties are jointly and severally liable for adjudication costs (s 46(4)–(5)). These requirements create outlays before and during adjudication and can impose cashflow constraints on small participants.\n- Contract freedom and implied terms: the Act invalidates or modifies particular contractual provisions (s 10; ss 12–13) and inserts implied terms if contracts lack them (ss 16–25; Schedule 1). That reduces some contractual choice but supplies default rules for timing, content and payment processes.\n- Enforcement and finality: an adjudicator’s determination is binding on the parties even if other court or arbitration proceedings are pending (s 40). Determinations can be converted into court orders for enforcement by filing a certified copy and affidavit (s 45). The adjudicator’s determination is final for the matter adjudicated (s 43), although courts and arbitrators must allow for amounts already paid under a determination when making later awards (s 47(4)).\n\nCosts, incentives and trade-offs\n- Incentives created: faster interim resolution favours parties needing cashflow (typically contractors and subcontractors) because adjudications produce prompt, enforceable outcomes (ss 33, 41, 45). The ability to suspend work for non‑payment (s 44) strengthens the contractor’s leverage to obtain payment. Those incentives can change bargaining and operational behaviour (e.g. earlier payment claims, quicker disputes lodged).\n- Compliance burden: parties must follow detailed procedural and evidentiary requirements for claims and disputes (s 28(2); Schedule 1 cl 5–6). They may need to fund deposits, pay published adjudicator rates or bear their share of adjudication costs (s 46). Smaller firms may face relatively higher compliance costs and up‑front payments.\n- Discretion and implementation risk: the Act vests operational discretion in adjudicators, prescribed appointers and the Registrar (ss 30, 31, 33, 34, 49–52). The Regulations (s 64) can materially affect scope (e.g. what counts as a high value contract, maximum rates, procedural rules), so outcomes depend on delegated instruments and administrative practice.\n- Effects on private contracting: the Act limits some contractual protections (s 12) and imposes statutory defaults (Schedule 1). Parties retain some ability to choose procedures only for \"high value\" contracts that meet regulatory criteria (s 10A). The scheme therefore narrows some contractual options while allowing regulated exceptions for certain contracts.\n\nConcentrated benefits and diffuse costs (mechanisms, not conclusions)\n- The procedural and enforcement tools (fast adjudication, suspension of work, direct court enforcement) concentrate a cashflow and enforcement advantage in favour of parties that bring payment claims successfully (contractors who secure determinations) (ss 33, 44, 45). The cost of operating the adjudication system (adjudicator fees, deposits, administrative overhead) is spread across parties using the process and ultimately borne by the parties who must pay under determinations (s 46).\n\nInteraction with other law and review\n- The Act binds the Crown (s 11), is subject to the Community Justice Centre Act where relevant (s 11A), and permits judicial or arbitral proceedings to continue while an adjudication proceeds (s 47(1)–(2)), but treats adjudicator determinations as binding and enforceable unless and until set aside by review processes (ss 40–45, 58). The Minister must report on the Act’s operation annually (s 63) and the Act requires a statutory review of its first five years (s 65).\n\nKey procedural citations (representative): s 3 (object); ss 5–8 and 7A (definitions); ss 10–13 (contracting out and prohibited terms); Schedule 1 (implied provisions); ss 27–34, 38–39 (adjudication process); ss 44–45 (suspension and enforcement); ss 46, 49–55 (costs and administration)."}},"importantCases":[],"_links":{"self":"/api/acts/construction-contracts-security-of-payments-act-2004","history":"/api/acts/construction-contracts-security-of-payments-act-2004/history","analysis":"/api/acts/construction-contracts-security-of-payments-act-2004/analysis","conflicts":"/api/acts/construction-contracts-security-of-payments-act-2004/conflicts","importantCases":"/api/acts/construction-contracts-security-of-payments-act-2004/important-cases","documents":"/api/acts/construction-contracts-security-of-payments-act-2004/documents"}}