Question 1: If the contract does not provide a rate of interest and the parties make no submission on interest, how would the Adjudicator decide the rate of interest under s.15?
The adjudicator must, in every adjudication, determine the rate of interest payable on overdue progress payments (Section 26(1)(c)).
The assumption in this exercise is that the construction contract does not provide a rate of interest.
If the claimant makes a submission (and the adjudicator is satisfied with that submission) that the construction contract is a “building contract” as defined in Part 4A of the Queensland Building Services Authority Act 1991 (“QSBA”), then section 15(3) applies and interest is payable at the “penalty rate” under section 67P of the QSBA.
That section provides a “penalty rate” of interest on progress payments that are late. The rate is the sum of 10% a year plus the rate comprising the annual rate, as published from time to time by the Reserve Bank of Australia, for 90 day bills.
In cases where the construction contact is not a “building contract” as defined by the QSBA, then section 15(2) prevails and the rate of interest to be applied is the rate prescribed under the Supreme Court Act 1995, section 48(1) for debts under the judgement order.
Where the parties make no submission of interest, an adjudicator should not try to work out whether the contract is one to which the QSBA section 67P applies. Unless a party submits that interest should be at the rate under section 15(3), the adjudicator should not try to assist the claimant and proceed to apply section 15(2).
The adjudicator is to determine the rate only – not the amount – of interest that is to be paid. This can be expressed by way of the following examples:
“The rate of interest payable in the adjudicated amount is the penalty rate prescribed under section 67P of the Queensland Building Services Authority Act 1991”
or
“The rate of interest payable on the adjudicated amount is the rate prescribed under the Supreme Court Act 1995, section 48(1) for debts under a judgement order.”
It is the authorised nominating authority that calculates the amount of interest due at the date of issue of the adjudication certificate.
Question 2: Assume that the payment claim includes an amount for interest on previous progress claims which are not paid on time. Assume that the claimant claims that the amount is payable under s.15(2) or s.15(3) of the Act. Is the claimant entitled to include such a claim in the payment claim?
What difference, if any, would it make if the previous progress claim were not claims under the Act but were duly made under the terms of the construction contract?
The claimant has a statutory entitlement to interest on progress payments that are not paid on time irrespective of what the contract provides.
A progress payment is defined in Schedule 2 to mean a payment to which a person is entitled under Section 12. Section 12 provides that from each reference date under a construction contract, a person is entitled to a progress payment if the person has undertaken to carry out construction work, or to supply related goods or services, under the contract.
Given that “interest is payable on the unpaid amount of a progress payment that has become payable” (section 15(2)), then interest is payable on a progress payment whether or not the progress payment has been claimed under the Act.
The claimant is entitled to include in the payment claim an amount of interest on previous progress claims which were not paid on time, and claim that the amount is payable under section 15(2) or section 15(3).
If any payment claim is not paid by the due date, the claimant should ensure that the next payment claim includes interest from the due date for payment of the earlier payment claim to the reference date for the new payment claim.
REFERENCES
- Davenport P, Adjudication in the Building Industry (2nd edn, Sydney, The Federation Press, 2004) p42
- Jacobs S J, Security of Payment in the Australian Building and Construction Industry (2nd edn, Sydney, Lawbook Co, 2007) s95.670
- Davenport P, Supplement to Adjudication in the Building Industry 2nd Edition by Philip Davenport, (2004), p2
- Davenport P, Guide for Adjudicators in Queensland, (2004), p6
- Davenport P, Adjudicate Today Adjudication Training – Examples of Decisions and Determinations, (2009), p13
JERRY
August 18, 2011 at 12:53 pm
……
Buydrugs without prescription vrg…
BRYAN
August 18, 2011 at 5:39 pm
.…
Buygeneric drugs nih…
GLENN
August 18, 2011 at 7:50 pm
..…
Buyno prescription tao…
EVAN
August 19, 2011 at 1:32 am
..…
Buydrugs without prescription ygy…
VINCENT
August 19, 2011 at 10:35 pm
.…
Buyit now ojb…
DUANE
August 21, 2011 at 7:32 am
..…
Buynow it sgk…
VERNON
August 21, 2011 at 8:25 am
……
Buynow ela…
NICHOLAS
August 21, 2011 at 11:14 am
.…
Buygeneric pills oir…
LOUIS
August 21, 2011 at 5:44 pm
……
Buynow fjl…
ZACHARY
August 22, 2011 at 3:04 pm
.…
Buygeneric drugs axm…
GERARD
August 23, 2011 at 4:36 am
..…
Buyit now irl…
JON
August 24, 2011 at 9:21 pm
..…
Buygeneric drugs ajd…
NICK
August 25, 2011 at 4:01 am
..…
Buyno prescription lka…
ENRIQUE
August 26, 2011 at 10:26 am
.…
Buywithout prescription…
FREDRICK
August 26, 2011 at 7:44 pm
.…
Buyno prescription…
OLIVER
August 27, 2011 at 6:25 am
..…
Buynow…
JOSE
August 27, 2011 at 11:44 am
……
Buygeneric pills…
HUBERT
August 27, 2011 at 7:36 pm
……
Buygeneric drugs…
MAX
August 27, 2011 at 10:45 pm
..…
Buygeneric drugs…
DAN
August 27, 2011 at 11:44 pm
.…
Buynow it…
RUBEN
August 28, 2011 at 4:55 am
……
Buygeneric meds…
EDGAR
August 28, 2011 at 8:32 pm
..…
Buygeneric meds…
FERNANDO
August 29, 2011 at 2:07 pm
..…
Buywithout prescription…
RAFAEL
August 29, 2011 at 3:26 pm
..…
Buygeneric meds…
TYLER
October 17, 2011 at 9:05 pm
stage 3 ovarian cancer…
Buy_drugs without prescription…
FREDDIE
October 19, 2011 at 1:01 am
the process of methanogens metabolism…
Buy_drugs without prescription…
MIKE
October 19, 2011 at 6:01 am
viagra order uk…
Buy_generic pills…
DUSTIN
October 19, 2011 at 12:42 pm
weight loss disclaimer law…
Buy_drugs without prescription…
BILLY
October 19, 2011 at 7:22 pm
hiv aids in california in 1997…
Buy_generic pills…
FRANCIS
October 19, 2011 at 9:01 pm
impact rating journal of clinical psychology…
Buy_now it…
NORMAN
October 20, 2011 at 11:22 pm
what are the trimesters of pregnancy…
Buy_generic drugs…
STUART
October 21, 2011 at 11:34 am
viagra in the uk…
Buy_no prescription…
BRADLEY
October 21, 2011 at 11:13 pm
percent of obese children in usa…
Buy_now it…
PEDRO
October 22, 2011 at 7:34 am
ept pregnancy test…
Buy_generic meds…
KENNETH
October 22, 2011 at 7:57 pm
arimidex and marathon…
Buy_generic drugs…
DERRICK
October 23, 2011 at 2:09 pm
market drugs edmonton…
Buy_now it…
LESLIE
October 25, 2011 at 12:34 am
adrenal cancer symptoms…
Buy_generic drugs…
FREDERICK
October 25, 2011 at 10:35 am
good and bad drugs…
Buy_without prescription…
HOWARD
October 25, 2011 at 12:15 pm
is hepatitis b contagious…
Buy_generic pills…
ROBERTO
October 25, 2011 at 3:35 pm
weight loss doctors in memphis tennessee…
Buy_generic drugs…
BILLY
October 25, 2011 at 6:55 pm
drug rehab center british columbia…
Buy_generic drugs…
TOM
October 26, 2011 at 3:14 am
is flomax good for prostatitis…
Buy_generic meds…
GORDON
October 26, 2011 at 4:54 am
indigestion and chest pain…
Buy_now it…
ISAAC
October 26, 2011 at 2:54 pm
ultimate diet pills…
Buy_generic pills…
CHRIS
October 27, 2011 at 10:54 am
cancer of spine…
Buy_without prescription…
RENE
October 28, 2011 at 3:15 pm
terbutaline autism claim…
Buy_no prescription…
ANDREW
October 28, 2011 at 4:54 pm
iv zofran…
Buy_drugs without prescription…
TERRENCE
October 29, 2011 at 2:54 am
stress from clinical duty…
Buy_without prescription…
MARC
October 29, 2011 at 3:27 pm
saline for nebulizer…
Buy_generic pills…
KYLE
October 30, 2011 at 1:27 am
decongestants hypertension safe…
Buy_now it…