The long-awaited changes to the Building and
Construction Industry Payments Act 2004 (Qld) (BCIPA)
commenced on 15 December 2014, dramatically altering the landscape
for payment claims and adjudications in Queensland.
A number of significant changes have been implemented.
Importantly, there is a new regime for the categorisation of
payment claims. Payment claims for less than $750,000 (excluding
GST) are categorised as 'standard' payment claims, which a
respondent must respond to within 10 business days or the time
required under the construction contract.
Where the claim is for over $750,000 (excluding GST) it will be
categorised as a 'complex' payment claim and the respondent
will have an extended time to respond (either 15 business days, 30
business days or the time required under the construction contract
– depending on the provisions of the contract and when the
payment claim was served).
The BCIPA changes also make provision for longer adjudication
timeframes for 'complex' claims.
Other important changes include the following:
Adjudication applications will now need to be submitted to the
Queensland Building and Construction Commission (QBCC). The QBCC is
now the central administering body for adjudications in
The period 22 December to 10 January has been excluded from the
definition of 'business day' to accommodate the
industry-wide slowdown over the Christmas period.
The time frame for submission of payment claims has been
reduced from 12 months to 6 months unless the construction contract
provides otherwise (although the 12 month time frame will continue
to apply until 15 June 2015 if the relevant construction contract
was entered into before 15 December 2014).
The changes to BCIPA include some potentially complicated
transitional provisions that apply to construction contracts and
payment claims in place before 15 December 2014. If you are a
claimant or respondent in this situation you should give careful
consideration to how (and if) the amended version of BCIPA applies
Other participants in the industry should also familiarise
themselves with the new requirements to ensure their rights are
protected in relation to future progress claims.
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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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