In recent months, applicants for adjudication under the Construction Contracts Act (WA) 2004, have requested that we extend credit for the costs of the adjudication. We’ve been sympathetic to these requests, encouraged by the party’s written commitment to make payment at a later date.

We now find in two instances that we must pursue the debt in a court of competent jurisdiction, in accordance with section 44(12) of the Act.

Applicants for adjudication should note that section 44(8) of the Act states that “An appointed adjudicator may at any time require one or more parties to provide a reasonable deposit, or reasonable security, for the, or any anticipated costs of the adjudication.”

Furthermore, in accordance with section 26(1)(d) of the Act, they must (amongst other things) “provide any deposit or security for the costs of the adjudication that the adjudicator …requires under section 44(8) …”

Finally also note that in accordance with section 31(2) of the Act “An appointed adjudicator must …dismiss the application without making a determination of its merits if …[amongst other things] the application has not been prepared and served in accordance with section 26…”

Thus a failure to provide the requested security for costs of the adjudication may result in the application being dismissed.