On 9 April 2014, the Queensland Government announced its
intention to amend the Building and Construction Industry
Payments Act 2004 (Qld) (BCIPA). The flagged
amendments will implement some of the 49 recommendations made in a
review of the BCIPA by prominent barrister Andrew Wallace, which
was released at the same time.
The amendments have been identified to fall into three key areas
of reform. In our view, the most important amendments are:
Key area 1: Adjudication process
A single Adjudication Registry within the Queensland Building
and Construction Commission (rather than the Authorised Nomination
Authorities) will appoint adjudicators and monitor their
There will be an increase in the benchmark for skills and
qualifications of adjudicators.
Key area 2: Timeframes for claimants and respondents
For large/complex claims (defined as claims in excess of
$750,000, for latent conditions or time related costs), a
respondent will now have:
15 business days for a payment schedule (and longer if there is
a delay in submitting the claim)
15 business days for an adjudication response (and longer if
the adjudicator allows).
Payment claims must be made within six months (rather than the
previous 12 months) after construction work was last carried out,
if the contract provides a longer period
for recovery of a final progress payment, when the payment
claim must be served as provided by the contract (or, if the
contract does not so provide, within 28 days of the end of the
defects liability period).
Key area 3: Provision of additional information
A respondent can include reasons for withholding payment which
were not raised in the payment schedule (subject to a
claimant's right of reply).
We shall circulate a more detailed review of the proposed
amendments and their practical implications over the coming
It is currently proposed that the amendments will be legislated
by 1 September 2014, affecting only contracts entered into from 2
September 2014 (although all adjudicators will be appointed by the
Adjudication Registry from 2 September 2014).
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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