Earlier this year we reported on some proposed key
changes to the Building and Construction Industry Payments Act
2004 (Qld) (BCIPA) that had been presented to Parliament. The
Bill that was considered was passed on 11 September 2014 and will
bring into effect significant changes to the existing
The Bill sets up the planned dual regime, which allows claims to
be classified as 'complex' claims where the claim is over
$750,000 or is for latent condition or a time related cost.
Other important changes include:
A new system for complex claims under which the time for a
respondent to provide a payment schedule will be extended to 15
Time frames will be extended to 30 business days if the payment
claim for a progress claim is served more than 90 days after the
date in the contract on which a claim for progress payment may be
The time for a respondent to provide an adjudication response
will increase from five business days to 10 business days, with an
extension to 15 business days for complex claims.
In relation to complex claims, the adjudicator will be able to
extend the time for an adjudication response by up to an additional
15 business days.
The definition of 'business days' will exclude the
three business days before Christmas until 10 business days after
New Year's Day.
The time to lodge a payment claim will be reduced from 12
months to six months after the construction work was last carried
out or the period worked out under the contract, whichever is
In addition to these changes, the reforms will allow a
respondent to complex claims to include in its adjudication
response all relevant reasons for withholding payment, regardless
of whether or not these matters were first raised in the payment
schedule. This is an important difference between the new proposed
legislation and the existing legislation.
The new provisions are due to come into effect within the coming
months, so now is the time for industry players to adapt existing
systems to ensure that they comply with the new requirements. Both
potential claimants and respondents should make sure they know
about the new changes so they can protect their respective rights
in relation to progress claims.
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