New BCIPA changes passed through parliament – 11th September
Last month amendments to the Building and Construction Industry Payments Bill 2014 were passed through the Queensland Parliament. Further to our article from August, there are some new conditions of which Building and Construction industry professionals should take note. The new Act was expected to have come in to effect earlier this month, however following these recent amendments to the original Bill, we may be waiting a little longer. Here are the key changes:
- Contracts entered in to before the commencement of the Act – under the original draft of the Act, these contracts were to be included in the new procedure laid out in the new Act. The most recent revisions, however, now provide that only contracts which are entered in to after the date on which the Act commences will be affected by the new regulations.
- QBCC’s role in the adjudication process- The Queensland Building and Construction Commission will be adopting an appointing role which will still occur as soon as the Act comes in to effect. The new Act also empower the QBCC to establish a set of principles for the appointment and ranking of adjudicators.
- Complex claims – Defining a complex claim has become much simpler under the newest revision of the Act, as now any claim over $750 000 will automatically become a complex claim. There are no longer any other conditions which may result in a complex claim, and it is not necessary to specify in the contract whether the claim is complex.
- Time frames – The original proposed amendments have survived the revision of the bill unscathed, and remain as follows:
- Time to make a payment claim is being reduced from 12 to 6 months from the date that the works have been completed, however, a different time period can be agreed upon in your contract. If no time period is specified in the contract, the 6 month period will apply.
- If you are sending out the final payment claim, the time to serve the payment claim will be the later of: the period agreed in the contract, 6 months from the completion of the works, or fi28 days from the end of the defects liability (under the contract).
- Second chances for payment schedules– if the respondent gives a payment schedule in response to a payment claim, the claimant must issue a second chance for payment within 20 days of the due date for the payment. The respondent will then have 5 extra business days to respond to the payment. This can become an issue if the claimant fails to issue the second chance within the 20-day limit, as they will become unable to apply for adjudication or judgement, and may lose the payment.
- Adjudication process – significant changes have been made the adjudication process. Should you wish to enquire further about your options in respect of adjudication, please contact our office.
Still confused? Here is a visual summary of the new BCIPA process as of 11th September 2014 (yet to come in to effect):
Samantha Wooding – Solicitor