The End Game: Enforcing an Adjudication Determination (Part 5 of Our SOPA Series)
Welcome back to the final instalment of our comprehensive series on the Security of Payment Act (SOPA). Throughout this series, we've explored the foundational principles of SOPA, the critical role of payment claims and schedules, the intricate adjudication process, and the common pitfalls to avoid. Now, we arrive at the crucial final step: what happens when an adjudicator has made a determination, but the losing party fails to pay?
The power of SOPA lies not just in its ability to provide quick determinations, but in the robust mechanisms it offers for enforcing those decisions. An adjudicator's determination is not merely an opinion; it's a binding decision that carries the weight of the law. However, despite this, some respondents may still choose not to comply. This is where the enforcement provisions of SOPA come into play, providing successful claimants with clear pathways to recover the money they are owed.
Let's delve into the steps and avenues available for enforcing an adjudicator's determination.
Obtaining an Adjudication Certificate
The first critical step after receiving a favourable adjudication determination is to obtain an Adjudication Certificate. This certificate, issued by the Authorised Nominating Authority (ANA) that appointed the adjudicator, officially records the adjudicated amount and confirms the determination. It's essentially the formal document you'll need to proceed with enforcement.
Registering the Determination as a Court Judgment
Once you have the Adjudication Certificate, the most common and effective enforcement pathway is to register it as a judgment debt in the appropriate court. This transforms the adjudicator's determination into a formal court order, allowing you to use the standard debt recovery procedures available through the court system.
The jurisdiction of the court will depend on the amount of the adjudicated debt:
- Local Court: For smaller amounts (typically up to $100,000, or $120,000 in some limited circumstances, depending on the state/territory).
- District Court: For intermediate amounts (e.g., between $100,000 and $750,000).
- Supreme Court: For larger sums (exceeding $750,000).
To register the determination, you will typically need to file the Adjudication Certificate along with an affidavit confirming that the adjudicated amount, or a portion thereof, remains unpaid. Crucially, at this stage, the respondent generally cannot dispute the existence of the debt or raise new offsetting claims that were not presented during the adjudication. This reinforces the "pay now, argue later" principle of SOPA.
Avenues for Enforcement of a Court Judgment
Once the adjudication determination is registered as a court judgment, you gain access to a range of powerful enforcement tools, similar to those available for any other civil judgment:
- Writ of Execution/Garnishee Order: This allows for the seizure and sale of the respondent's property (e.g., real estate, vehicles) to satisfy the debt. Alternatively, you can seek a garnishee order to redirect money owed to the respondent by a third party (e.g., bank accounts, or debts owed to them by other parties) directly to you.
- Statutory Demand: For corporate respondents, a common enforcement method is to serve a Statutory Demand under the Corporations Act. If the company fails to pay the debt (or apply to set aside the demand) within 21 days, it is presumed to be insolvent, which can lead to winding-up proceedings. This is a very serious consequence for a company.
- Suspension of Works: SOPA also grants the claimant the right to suspend work on the project if the adjudicated amount remains unpaid by the due date. Proper notice must be given, but this can be a powerful lever to encourage payment, as continued project delays can be extremely costly for the respondent.
- Lien over Unfixed Goods: In some jurisdictions, SOPA provides for a lien over unfixed plant or materials supplied by the claimant, allowing them to retain possession until the payment is made.
- Payment Withholding Request: In certain circumstances, a claimant can serve a payment withholding request on the principal contractor (the party above the respondent in the contractual chain), directing them to hold back money that would otherwise be due to the respondent to cover the adjudicated amount.
Important Considerations for Enforcement
- Timeliness: Just like all other stages of SOPA, acting promptly is key when enforcing a determination. Delays can give the respondent more time to dissipate assets or implement strategies to avoid payment.
- Legal Advice: While the enforcement steps seem straightforward, navigating court procedures and choosing the most effective enforcement method often requires expert legal advice. A lawyer specialising in construction and SOPA can guide you through the process, ensuring compliance and maximising your chances of recovery.
- The "No Set-Off" Rule: The strength of SOPA enforcement lies in the limited grounds on which a respondent can challenge a registered judgment. Unless there was a jurisdictional error by the adjudicator (a very high bar), the courts generally will not revisit the merits of the dispute or allow the respondent to raise new claims to offset the adjudicated amount.
Conclusion of Our SOPA Series
The Security of Payment Act is a critical piece of legislation designed to maintain cash flow within the construction industry and prevent insolvency caused by payment disputes. From understanding payment claims to navigating adjudication and ultimately, enforcing determinations, each step of the SOPA process is designed for speed and efficiency.
By diligently adhering to the Act's requirements and understanding the avenues available for enforcement, contractors and subcontractors can leverage SOPA as a powerful tool to secure their right to payment. While the process can be challenging, particularly when faced with non-compliance, the mechanisms for enforcing an adjudicator's determination are robust and ultimately aim to ensure that those who do the work get paid.
We hope this series has provided you with a valuable understanding of the Security of Payment Act and empowered you to navigate its complexities with confidence.

Senior Solicitor
Email: kristen@hntlegal.com.au









