Update: Start Date for new security of payment laws

WHO SHOULD READ THIS

• All participants in the Queensland Construction industry.

THINGS YOU NEED TO KNOW

• The Queensland Government has announced that its changes to the security of payment regime in Queensland will apply from 1 July 2018.

WHAT YOU NEED TO DO

• Consider how the changes to the security of payment regime will affect the way your project is administered when dealing with claims for payment. The amendments will impact all levels of government, owners and developers, principals, head contractors, subcontractors, suppliers and consultants acting as superintendents.

Last year, the Queensland Government passed the Building Industry Fairness (Security of Payment) Act 2017 (the BIF Act).  A key feature of the BIF Act is the repeal of the Building and Construction Industry Payments Act 2004 (Qld) (BCIPA), and the introduction of a new security of payment regime (including the adjudication of payment disputes).  From 1 July 2018, this new regime will immediately apply to all construction contracts entered into before or after the BIF Act.

Payment claims, payment schedules, and the adjudication process previously in place under BCIPA will now be governed by Chapter 3 of the BIF Act.  The BIF Act introduces new requirements and penalties to the security of payment process in Queensland, including less stringent requirements for payment claims, notably removing the requirement for payment claims to be endorsed as such under BCIPA, and the imposition of penalties for failing to provide a payment schedule.

You can read more about the changes to the security of payment regime in our earlier updates, located here and here.

The Queensland Government recently announced that its changes to the security of payment regime in Queensland will commence from 1 July 2018.  From this date, all payment claims issued under construction contracts will be governed by the BIF Act, not BCIPA.  The proposed regulations that compliment the security of payment amendments have not yet been released.

Though the BIF Act also provides for the repeal and replacement of the Subcontractors’ Charges Act 1974 (Qld), the Government’s announcement was silent on the start date of the new subcontractors’ charges regime (which is broadly similar to the existing regime).  It is anticipated this change will also occur in 1 July 2018.

The third phase of the BIF Act, which reinstates mandatory financial reporting for building companies in Queensland, will commence on 1 January 2019.

For more details on our Construction Law Conference that we are conducting in Brisbane on 20 September 2018, please click here.

This publication covers legal and technical issues in a general way. It is not designed to express opinions on specific cases. It is intended for information purposes only and should not be regarded as legal advice. Further advice should be obtained before taking action on any issue dealt with in this publication.