Security of payment – Qld

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.