One of the most common questions sub-contractors ask is: “What if the Main Contractor simply ignores my Payment Claim and does not respond?”
Under CIPAA 2012, ignoring a Payment Claim is not an option the Respondent can safely take. Here is what happens at each stage.
Stage 1: The Payment Response Deadline
After you serve a Payment Claim, the Respondent has 10 working days to serve a Payment Response disputing your claim. If they fail to do so, they are deemed to have accepted your claim in full.
Stage 2: Notice of Adjudication
If no Payment Response is received or payment is not made, you proceed to serve a Notice of Adjudication. The Respondent then has a further opportunity to participate in the adjudication process.
Stage 3: No Adjudication Response
If the Respondent still does not participate, the Adjudicator will proceed on the basis of your Payment Claim alone. The Respondent loses the right to present their side of the case.
Stage 4: Ex Parte Decision
The Adjudicator may issue an Adjudication Decision based solely on your submissions. In most cases, this results in a full or near-full award in the Claimant’s favour.
Stage 5: Enforcement
An Adjudication Decision is immediately binding and enforceable. You may apply to the High Court to convert it into a court judgment. You may also apply for direct payment from the Respondent’s principal (the party above them in the contract chain).
The lesson: Ignoring a CIPAA Payment Claim only makes things worse for the Respondent — and easier for you as the Claimant.
If your Main Contractor has ignored your payment demand, contact WE Project Management PLT for a free initial consultation.