Judgment debt

A judgment debt is a debt that has been formally recognised by a court order, granting the creditor access to standard civil enforcement powers (garnishee orders, writs of execution, charging orders, bankruptcy or winding-up proceedings). For construction subcontractors, the fastest route to a judgment debt is through Security of Payment Act (SOPA) adjudication followed by registration of the adjudication certificate with a court (verified 2026-05-16; NSW SOPA section 25 is the typical example).

How a SOPA adjudication becomes a judgment debt (NSW):

1. Subbie issues a SOPA payment claim to the head contractor.
2. Head contractor responds with payment schedule or fails to respond (deemed admission).
3. If unpaid, subbie applies for adjudication within the statutory time window.
4. Adjudicator issues a determination of the amount owed.
5. If unpaid after the due date in the determination, subbie obtains an adjudication certificate from the authorised nominating authority.
6. Register the certificate at the local court (Local, District, or Supreme depending on amount).
7. Registration = judgment debt. Full enforcement opens up.

The whole pathway, from payment claim to enforceable judgment, can run as fast as 8 to 12 weeks in NSW. Compare to a normal District Court contract claim, which can take 12-24 months. SOPA is purpose-built for speed to keep subbie cashflow moving.

Enforcement options once you have a judgment debt:

Enforcement	What it does	When it works
Garnishee order	Court directs a third party (bank, employer) to pay debtor’s funds to you	Bank account or wages identifiable
Writ of execution / writ of fieri facias	Sheriff seizes and sells debtor’s goods	Assets identifiable
Writ of possession	For property	Real estate
Charging order	Charge over debtor’s interest in property	Debtor owns real estate
Statutory demand	Triggers winding-up application if debt unpaid 21 days	Debtor is a company
Bankruptcy notice	Triggers bankruptcy petition if debt unpaid 21 days	Debtor is an individual
Examination summons	Court orders debtor to attend and disclose assets	When assets are unknown

Builder-side perspective: head contractor faced with adjudication determination:

If the head contractor is on the wrong end of a SOPA determination, the determination cannot be appealed on merits. Limited grounds (jurisdictional error, no service) can be challenged in the Supreme Court, but the bar is high. Practical defences:

• Pay the determined amount within the time window (preserves head contractor’s right to litigate the underlying dispute later in court if needed).
• Apply for stay of enforcement in the Supreme Court on jurisdictional grounds (rare success).
• Initiate substantive proceedings to recover the paid amount in due course (the “pay now, argue later” principle of SOPA).

The “pay now, argue later” doctrine is the whole point of SOPA. The Act allocates cashflow without prejudicing the final contractual position. Both sides retain the right to litigate the underlying dispute in due course; the determination is binding on cashflow but not on substantive contract law.

Cross-state variation:

State	SOPA equivalent	Registration mechanism
NSW	Building and Construction Industry Security of Payment Act 1999 (NSW)	s.25 adjudication certificate registration
QLD	Building Industry Fairness Act 2017 (Qld)	Similar registration pathway
VIC	Building and Construction Industry Security of Payment Act 2002 (Vic)	Similar
WA	Construction Contracts Act 2004 (WA)	Different mechanism, “West Coast” model
NT, SA, TAS, ACT	State-specific	Vary

(All current as of 2026-05-16.)

Also known as: judgement debt (British spelling); enforceable judgment; registered determination; SOPA judgment.

Category: Contracts & commercial.

Related

• Adjudication certificate
• Statutory demand
• Business day

See also

• Adjudication process
• Security of Payment Act 1999 (NSW)

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Last updated: 2026-05-16. Verified: 2026-05-16. Quarterly review for currency.