Note: A number of amendments to the Building Industry Fairness (Security of Payment) Act 2017 have taken effect from 1 October 2020 and have been implemented progressively. These amendments provide for a new project trust accounting framework, require a supporting statement to accompany a payment claim submitted by a head contractor, and provide for a payment withholding request regime. Queensland architects need to be aware that:
- From 1 March 2021, a new project trust framework commenced to eligible Queensland Government contracts valued at between $1 million and $10 million (which were already subject to project bank account requirements). From 1 July 2021, the framework expanded to eligible government and Hospital and Health Services contracts valued at $1 million or more, and from 1 January 2022, the framework expanded to include legible private sector, local government and statutory authority contracts with a value of $10 million or more. This framework is scheduled to expand to apply to other contracts progressively until 2025.
- Where a head contractor provides a payment claim to the principal, they must provide a supporting statement that states that all of their subcontractors have been paid. If payment has not been made, they must explain their reasons for non-payment.
- When an adjudicated amount has not been paid, a payment withholding request or a statutory charge may be able to be lodged.
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The Building Industry Fairness (Security of Payment) Act 2017 (QLD) came into operation on 10 November 2017. It applies to almost all people working in the building and construction industry that enter into contracts for construction work.