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Building & Construction News Alert: Have you reviewed your contracts since the new QBCIP Act 2004 provisions were proclaimed?

News Alert 03 February 2015

As reported previously in our Building & Construction News Alert: Proclamation of Queensland Building and Construction Industry Payments Amendment Act 2014, the new provisions of the Building and Construction Industry Payments Amendment Act 2014 were proclaimed on 15 December 2014.

Since this proclamation there are two issues of immediate importance to the Queensland Building and Construction industry:

  1. Review payment schedule delivery dates: Section 18A in respect of complex claims (claims over $750,000) provides that a payment schedule delivery over extended periods of between 15 and 30 business days, depending upon the kind of claim, is only open if there is not an earlier time referred to in the contract. Commonly parties’ subcontracts provide for the previous Act timing of 10 business days. As a consequence, the more generous provisions of either 15 or 30 business days won’t be available unless that specific clause is amended to allow for the more generous 15 or 30 days in complex matters. We would strongly recommend a review of subcontracts.
  2. Transitional provisions: The transitional provisions were changed shortly prior to proclamation. Rather than reliance upon when the contract was entered into (before or after 15 December 2014) there are much more immediate concerns for contracts entered into before 15 December 2014, now that these amendments have been made. Generally speaking, the new provisions concerning timing of payment schedules will apply to all payment claims made after 15 December 2014, regardless of when the contract was entered into.

There are other transitional provisions in relation to the latest time when a payment claim can be made. Effectively for a period of 6 months, until 15 June 2015, the 6 month limitation period for lodgement of claims will not apply and the old provisions concerning 12 months will continue until that date.

If you have any queries regarding these recommendations or require any building and construction legal advice please do not hesitate to contact Tony Mylne, Partner, Brisbane Construction Team.


Tony Mylne, Partner
Brisbane

News Alert 03 February 2015
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