CIPAA 2012 gives sub-contractors a powerful right to recover payment — but the process has strict procedural requirements. Here are the five most common mistakes we see, and how to avoid them.
Mistake 1: Serving the Payment Claim on the Wrong Party or Wrong Address
A Payment Claim must be served on the correct contracting party at their registered address or the address stated in the contract. Serving the claim on a site supervisor, a project manager’s personal email, or a WhatsApp message is not valid service. Always check the contract for the correct address and use registered post or personal service with acknowledgement.
Mistake 2: Not Having a Written Contract
CIPAA 2012 applies to written construction contracts only. If your agreement was made verbally or via WhatsApp messages only, you may face a jurisdictional challenge. However, a series of emails, purchase orders, letters of award, or even a formal quotation accepted in writing can constitute a written contract. Get advice before assuming you cannot proceed.
Mistake 3: Claiming for Items Not Due Under the Contract
Your Payment Claim must be based on work properly done and payment due under the contract. Claims for delay damages, loss and expense, or counterclaims require careful structuring. A poorly prepared claim invites counterclaims and deductions that can reduce your award significantly.
Mistake 4: Missing the Response Deadline
If you receive a Payment Response from the Respondent, you have a limited window to prepare and file your Adjudication Claim with the AIAC. Missing this deadline can be fatal to your claim. Use a professional representative to track and manage all CIPAA deadlines.
Mistake 5: Not Being Prepared for Counterclaims
Respondents often raise counterclaims for defective work, liquidated and ascertained damages (LAD), and backcharges. If you have not anticipated and addressed these in your Adjudication Claim, they can significantly reduce your award. Prepare your claim to rebut likely counterclaims from the outset.
WE Project Management PLT has handled over 800 CIPAA cases. We know the pitfalls — contact us before you make an expensive mistake.