(1)  Subsection (2) applies to a claimant if –

(a) the claimant serves a payment claim on a respondent; and

(b) the respondent provides a payment schedule to the claimant –

(i) within the period in which the payment is required to be made under the building or construction contract under which the payment is to be made; or

(ii) within the period before the expiry of the applicable day determined under section 19 in relation to the payment claim –

whichever period expires earlier; and

(c) the payment schedule indicates a scheduled amount that the respondent proposes to pay to the claimant; and

(d) the respondent does not pay to the claimant all of the scheduled amount on or before the due date for the progress payment to which the payment claim relates.

(2)  If this subsection applies to a claimant, the claimant –

(a) may –

(i) apply to a court of competent jurisdiction to recover from the respondent the unpaid part of the scheduled amount, as a debt due to the claimant; or

(ii) make an adjudication application under section 21 in relation to the payment claim; and

(b) may serve notice on the respondent of the claimant's intention to suspend carrying out building work or construction work, or supplying goods and services, under the building or construction contract.

(3)  A notice served under subsection (2)(b) must specify that the notice is made under this Act.

(4)  If an application is made by a claimant to a court in accordance with subsection (2)(a)(i) to recover from the respondent, as a debt, the unpaid part of the scheduled amount specified in a payment claim, the court may give judgment entitling the claimant to recover the unpaid part as a debt due and payable, if the court is satisfied that –

(a) subsection (2) applies to the claimant; and

(b) the respondent has not paid all of the scheduled amount on or before the due date for the progress payment to which the payment claim relates.

(5)  A respondent in proceedings under this section in a court of competent jurisdiction is not entitled in those proceedings –

(a) to bring a cross-claim against the claimant; or

(b) to raise a defence in relation to matters arising under, or relating to the subject matter of, the building or construction contract.