20 Novmber, 2018
The Queensland Government has proclaimed that the security of payment reforms made under the Building Industry Fairness (Security of Payment) Act 2017 (Qld) will commence on 17 December 2018
What you need to know
The security of payment provisions of the Building Industry Fairness (Security of Payment) Act 2017 (Qld) will commence on 17 December 2018
The commencement of these provisions represents significant reform to the security of payment regime in Queensland, and specifically in regard to the consequences of non-compliance with that regime
It has never been more important to have proper payment claim management systems in place
The Queensland Government has proclaimed that the security of payment reforms under the Building Industry Fairness Act 2017 (Qld) (BIF Act) will commence on 17 December 2018. These reforms will significantly impact on the management of progress payments and payment disputes in the Queensland construction industry.
Chapter 3 of the BIF Act replaces the provisions of the Building and Construction Industry Payment Act 2004(Qld) (BICPA). The new provisions unwind many of the reforms that were made to that legislation in 2014 with respect to the rights of payment claim respondents. The BIF Act also introduces new criminal sanctions for non-compliance with certain aspects of the security of payment regime.
Chapters 4 and 5 of the BIF Act will also commence on 17 December 2018. Chapter 4 introduces the modernised subcontractors' charges provisions, replacing the provisions of the Subcontractors’ Charges Act 1974 (Qld). The BIF Act consolidates this, and the security of payment regime, into a single piece of legislation.
Chapter 5 provides, among other things, for the administration and registration of adjudicators.
The remaining provisions of the BIF Act that are yet to commence concern the second phase of the project bank accounts regime. That second phase involves the implementation of project bank accounts for all private sector projects valued from $1 million. The Queensland Government has indicated that these provisions will not commence before 1 March 2019.
The BIF Act also provides for the appointment of a Building Industry Fairness Reforms Implementation and Evaluation Panel to assess the effectiveness of the reforms. The Panel is due to deliver its report in May 2019.
More details regarding the panel, including its terms of reference, can be found here.
For further information, please contact:
Jeremy Chenoweth, Partner, Ashurst
jeremy.chenoweth@ashurst.com
