From November 2017, the Building Industry Fairness (Security of Payment) Act 2017 (BIF Act) introduced reforms to ensure Queenslanders in the building and construction industry are paid for the work they do.
The BIF Act repealed the Building and Construction Industry Payments Act 2004 (BCIPA) and the Subcontractors Charges Act 1974 on 17 December 2018.
On 17 December 2018, BIF Act provisions commenced that relate to:
Requirements for retention monies and security (to be included in the Queensland Building and Construction Commission Act 1991).
Subcontractors’ charges
Progress payments
Adjudication
What this means for you
These changes affect payments for construction work and supply of related goods and services in Queensland.
New provisions were also introduced to the Queensland Building and Construction Commission Act 1991 via the BIF Act from 17 December 2018. These introduce new penalties for withholding retentions past the end of the defects liability period without a reasonable excuse.
The current situation
The BIF Act has changed the requirements for payment claims, subcontractors’ charges and adjudication.
The BIF Act adopts the same framework and principles of BCIPA but still uses the definitions of ‘construction work’ and the ‘supply of related goods and services’.
However, the requirements of the legislation now apply to all payment claims In other words a contractor no longer has to endorse a payment claim with the wording of the Act.
The current situation is more a streamlined adjudication process where disputes arise. This is good news if you are a contractor chasing money, but is even more difficult if you are a contractor disputing payment of money as timelines are now even more constricted.
Summary
All claims for payment (Including actual or merely alleged entitlement) are the subject of the BIF Act - Whether the claim says so on its face or not.
If not paying a claim in full by the due date, a payment schedule needs to be issued within 15 business days from receiving a payment claim (Unless required earlier under your contract).
All claims for payment must still be paid on time. Strict penalties now apply.
You should be aware that these requirements apply to all payment claims, not only those issued from 17 December 2018, But also these requirements apply to existing contracts entered into before the BIF Act was in force.
This publication considers legal and technical issues in a general way. It is not intended to be legal advice. Any legal advice is qualified on the basis that the reader should immediately confirm the information relied upon with Merlo Law. We look forward to being of assistance.
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