The Building and Construction Industry Payments Act 2004 (Qld) (BCIPA) has been long in the process of being amended. On 15 December 2014 the full amended provisions came into force. This means that the new provisions will apply to any contracts entered into after this date.
Blackout period and adjudication
A longer ‘black out‘ period has been established with the new reform. Business days now excludes all days between 22 December and 10 January each year. Payment claims served within this period will now be delayed for around three weeks.
There are also additional adjudication processes and requirements that have been inserted. The adjudication process is now administered by the Queensland Building and Construction Commission (QBCC).
Complex and Standard Claims
Payment claims have further been divided into two categories, Standard and Complex Claims. Standard Claims are claims for $750,000.00 (ex GST) or less, and Complex Claims are all other claims in excess of this amount. Standard claims require the standard 10 business day timeframe for service, whereas Complex Claims now have differing timeframes.
A Complex Claim served less than 90 days after the due date for payment requires 15 business days for service, where as if the 90 days from the due date has passed then 30 business days are required for service.
Further, in the event that a response is not received form the debtor within the timeframe required, then a second claim must then be served within 20 business days from the due date in the initial claim. The second claim will be required to give the debtor a further 5 business days to pay.
Time frames to commence
The timeframe for initial a payment claim on a debtor also has been shortened from 12 months to the later of the contracted timeframe or within 6 months after the construction work was last supplied. A final payment claim must also fall within the above time periods however also includes a period from 28 days after the end of the last defects liability period ( see Section 17A of the BCIPA).
Want more information?
Streten Masons Lawyers strive to keep the public updated with the most current news in changes to legislation. Early next month we are planning to hold a seminar for professionals in the Building & Construction industry. Anyone is welcome to come along to hear about the BCIPA changes in more detail and ask any questions you may have. If you would like to register your interest in this event, and receive ongoing updates regarding the BCIPA changes, fill your details out in the form below:
If you need assistance in the building payment claim process, contact us for expert advice as to how your interest might best be served.