In October 2017, the Queensland Government passed the Building Industry Fairness (Security of Payment) Act 2017 (Qld) (Act).
Our updated guide to the Act covers the current status of the Act – some of which will commence on 17 December 2018 – and also outlines some recent amendments to the Act.
The key changes made by the Act are summarised in the attached fact sheets:
- The introduction of Project Bank Accounts (PBAs) for certain construction projects. Read more in this fact sheet.
- The amendment and consolidation of the Building and Construction Industry Payments Act 2004 (Qld) (BCIPA) and Subcontractors’ Charges Act 1974 (Qld) (SCA). This will commence on 17 December 2018. Read more in this fact sheet.
- Amendments to the Queensland Building and Construction Commission Act 1991 (QBCC Act). Read more in this fact sheet.
- The introduction of penalty provisions to enforce compliance with the Act.
PBAs for private sector building contracts
On 1 March 2018, the PBA regime commenced for contracts where:
- the principal is the State or a ‘State authority’;
- the contract price is between $1 million and $10 million; and
- more than 50% of the contract price is for ‘building work’ (known as Phase 1).
The PBA provisions will, in the future, be extended to apply to all building contracts over $1 million (known as Phase 2).
PBAs are not be required for:
- building contracts only for residential construction work (unless the Department is the principal and the work is for three or more living units);
- maintenance work;
- the construction, maintenance or repair of a busways, roads or railways (or tunnels for that infrastructure); or
- an authorised activity for a resource activity.
The legislation provides that the Phase 2 provisions will commence on a date to be proclaimed. We expect that date to be 1 March 2019, as it was originally contemplated that Phase 2 would commence 12 months after Phase 1.
Amendments to the BCIPA, the SCA and the QBCC Act
Amendments to BCIPA and the SCA will commence on 17 December 2018. The commencement of the remaining amendments to the QBCC Act has yet to be proclaimed.
Recent amendments to the BIF Act
A number of changes to the Act were passed in the Plumbing and Drainage Act 2018 (Qld) to address industry feedback and to ensure that industry participants understand their obligations under the new Act. These recent changes have also been addressed in the attached fact sheets.
This article was originally co-authored by Andrew McCormack.
This publication is introductory in nature. Its content is current at the date of publication. It does not constitute legal advice and should not be relied upon as such. You should always obtain legal advice based on your specific circumstances before taking any action relating to matters covered by this publication. Some information may have been obtained from external sources, and we cannot guarantee the accuracy or currency of any such information.