The Queensland Government yesterday released a two page fact
sheet outlining a number of fundamental changes to the Building
and Construction Industry Payments Act 2004. In contrast to
the recent changes to the equivalent NSW Act, the pendulum has
swung significantly towards respondents in Queensland with the
proposed changes creating a more equitable forum for adjudicating
large construction payment claims. It is expected that these
changes will be well received by the construction industry that saw
$1.14 billion in claims submitted in Queensland in the previous 12
In summary, the key changes are:
The creation of a central "Adjudication Registry"
within the Queensland Building and Construction Commission
to register and appoint adjudicators, to ensure adjudicators act
impartially and independently of their own interests or the
interests of a particular sector within the industry
Adjudicators must consider if they have jurisdiction and can
now receive payment if they find there is no jurisdiction to
determine a claim
For claims for more than $750,000 (or other claims for latent
conditions or time related costs), the time for submitting a
payment schedule is increased to 15 business days from receiving
the claim (instead of 10 business days) and the time for submitting
an adjudication response is increased to 15 business days (instead
of 5 business days)
Regardless of the value of the claim, the time for submitting
adjudication responses is increased to 10 business days (instead of
5 business days)
A much wider period around the Christmas shutdown is excluded
from the definition of business day – including two weeks
after New Year's Day
Respondents will not be limited in their adjudication responses
to reasons contained in payment schedules but claimants will be
given the opportunity to reply to those new reasons
The amendments are likely to take effect on 1 September 2014 and
apply to construction contracts entered into after that date.
However, all adjudicator appointments made on or after 1 September
2014 will be made by the Adjudication Registry, regardless of when
the construction contract was entered into.
Norton Rose Fulbright has a market leading construction and
engineering practice. Please contact Peter Borg if you would like
to know more about the Security of Payment legislation and the
implications for your business.
The Council announced planning policies to encourage more inner suburban retirement village and aged care development.
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