Introduction
A number of Australian States have legislation to ensure that
disputes arising under construction contracts do not stop the
timely payment of progress payments. Generally speaking, the
legislation provides a process for a rapid resolution of certain
payment disputes.
In Western Australia, where the relevant legislation is the
Construction Contracts Act 2004 (CCA), this process is
called adjudication. A finding that a payment must be made is
called a determination, and it gives rise to an enforceable debt
payable by the principal under the contract. .
This is not the end of it; a progress claim can still be
disputed in the courts or by arbitration in the normal way, but a
determination requires that the progress payment be paid in the
meantime. It has been described as a "pay now, argue
later" system, the purpose of which is to ensure that the flow
of money to contractors and sub-contractors in a construction
contract cannot be held up solely by the
