What adjudication actually is

If a client hasn't paid and won't engage, you don't have to choose between writing the invoice off or spending a year in court. New Zealand has a faster option built specifically for the building trades: adjudication under the Construction Contracts Act 2002 (CCA).

Adjudication is a fast-track dispute resolution process. An independent adjudicator looks at your payment dispute and makes a binding decision — often in a matter of weeks rather than the many months a court claim can drag on for. The whole regime runs on a principle the courts call "pay now, argue later": keep the money moving so the people who actually did the work aren't left bankrolling everyone else up the chain.

Best of all, you don't need a lawyer to use it, and the adjudicator's determination is legally binding and enforceable — even if the other side wants to keep arguing.

Does it apply to you?

Almost certainly, if you're on the tools. The CCA covers construction work carried out under a construction contract in New Zealand, and that definition is broad. It takes in building, alterations, repairs and maintenance, plus the trades that go with them: plumbing, drainlaying, electrical, gasfitting, HVAC, roofing, painting and decorating, landscaping that involves earthworks, scaffolding and more.

It applies to both residential and commercial contracts, and whether you're the head contractor or a subbie three tiers down the chain. You also can't contract out of it — a clause in someone's terms saying "the CCA doesn't apply" has no legal effect. If you want the official scope, the Ministry of Business, Innovation & Employment guide to the Act is the place to check.

Start with a proper payment claim

Adjudication is far stronger when your paperwork is right from day one — and that starts with a valid payment claim.

A payment claim is more than just an invoice. Under section 20 of the Act, it must be in writing, identify the contract and the work it relates to, state the claimed amount and the due date for payment, and explain how that amount was calculated. When you're billing a residential occupier, the claim must also be accompanied by the prescribed Form 1 information, which outlines the payment and adjudication process in plain English.

Once you've served a valid payment claim, the clock starts:

The payer must respond with a payment schedule by the date in your contract or — if no date is agreed — within 20 working days of the claim. The schedule has to state how much they'll pay and, if it's less than you claimed, exactly why.
If they don't provide a payment schedule and don't pay, the full claimed amount becomes a debt that is due. You can then recover it in court and/or take it to adjudication.
You can also suspend work for non-payment after giving at least 5 working days' written notice, without being in breach of contract.

That second point is the one most tradies miss: blowing the payment-schedule deadline strips the other side of most of their defences. (See Building Performance: Construction Contracts Act 2002 for the official walk-through.)

When to use adjudication

You can refer a dispute to adjudication at any time — there's no stand-down period. It's the right tool when:

A client simply won't pay an undisputed invoice
There's a genuine dispute over variations, defects, or how much is owed
You served a payment claim and the payment schedule (or the payment) never turned up
A head contractor is sitting on money they owe you as a subcontractor

How adjudication works, step by step

Serve a notice of adjudication. You give written notice to the other party that you're referring the dispute. The notice must include the prescribed information (Form 2) explaining their rights and obligations in the process.
Get an adjudicator appointed. You and the other party can agree on one, or you can ask an Authorised Nominating Authority (ANA) to appoint a qualified, independent adjudicator for you.
The adjudicator accepts. They confirm they'll take the dispute on by issuing a notice of acceptance.
Serve your adjudication claim. You must serve your claim — your evidence and argument — within 5 working days of that notice of acceptance.
The other side responds, and the adjudicator makes a determination, usually within 20 working days of receiving the response. The adjudicator can extend that to 30 working days, or longer if both parties agree.
Payment. If the adjudicator decides money is owed, the respondent must pay within 2 working days of receiving the determination, or by a later date the adjudicator sets.

From notice to determination, a straightforward adjudication is often wrapped up in roughly four to eight weeks — a different planet from the District Court.

What it costs

You pay the adjudicator's fees, charged at an hourly rate, and the adjudicator decides how those costs are split between the parties. There are no court filing fees, and you can run the whole thing yourself without a lawyer — though you're allowed to bring one in if the dispute is complex. For most unpaid-invoice disputes, adjudication is dramatically cheaper and faster than litigation.

Enforcing the determination

An adjudicator's determination is binding. You must comply with it even if you intend to challenge it later in court. If the other party doesn't pay, you can enter the determination as a judgment and enforce it through the District Court like any other debt — and where they failed to provide a payment schedule, their ability to raise defences or counterclaims is very limited. In practice, that makes a determination very hard to wriggle out of.

Adjudication vs the alternatives

Adjudication (CCA): Fast (weeks), binding, no claim cap, no lawyer required, construction-specific. Best for payment disputes on building work.
Disputes Tribunal: Cheap and informal, but capped (currently $60,000) and often slower to a hearing. Good for small, simple debts.
District Court: No cap, but slow and costly. Usually a last resort, or for enforcing a determination.

For most tradies chasing a genuinely owed invoice, adjudication is the sharpest tool in the box.

Better still — don't let it get this far

Adjudication is a brilliant safety net, but the cheapest dispute is the one you never have. Clear written contracts, valid payment claims, firm payment terms and consistent follow-up on overdue invoices prevent the vast majority of payment fights before they start. That's exactly what TradeFlow is built for: we follow up your debtors, professionally and persistently, so most invoices get paid long before a word like "adjudication" ever comes up.

For the wider picture, read our guide on your legal rights when chasing unpaid invoices in NZ.

Sources & further reading

This guide is general information, not legal advice. For your specific situation, talk to a lawyer or a qualified adjudication advisor.

Update log

16 June 2026 — Updated the Disputes Tribunal cap to $60,000 (was $30,000). Why: the Tribunal’s financial jurisdiction increased to $60,000, effective 24 January 2026. Source: Ministry of Justice.
16 June 2026 — Guide first published.

Last reviewed: 16 June 2026.