glossary Glossary 2 min read

Adjudication

Adjudication is the fast-track dispute resolution pathway under Australian Security of Payment Acts for unpaid progress claims and retention money.

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Adjudication is the fast-track dispute resolution process under the Security of Payment Acts in each Australian state and territory. It gives builders, subcontractors, and suppliers a rapid pathway to recover unpaid progress payments, including retention money that has become due, without going to court.

Under the NSW Act, an adjudication decision is typically issued within 10 business days of the adjudicator’s appointment. The decision is binding and enforceable as a court judgment. It is not a final determination of the parties’ rights; either party can take the underlying dispute to court later, but the paying party must pay the adjudicated amount first.

A payment claim must have been validly served before adjudication can be triggered. Retention money can only be adjudicated once the contractual release trigger has been met (for example, once practical completion has occurred and the retention is overdue).

Also known as: SOP adjudication, security of payment adjudication.

Category: Contracts & commercial.

See also


Last updated: 2026-05-08. Verified: 2026-05-08. Quarterly review for currency.