Extended time limits for responding to complex payment
One of the amendments to BCIPA was to extend the time limit for
serving payment schedules in response to payment claims where the
amount claimed is more than $750,000 excluding GST (now known as
"complex payment claims").
The amended BCIPA provides that payment schedules in response to
complex payment claims must be served within the earlier
of the time required under the contract (if any) or:
15 business days after the payment claim is
served if the payment claim is served within 90 days after the
reference date to which the payment claim relates
30 business days after the payment claim is
served if the payment claim is served more than 90 days after the
reference date to which the payment claim relates.
Previously, respondents had 10 business days to serve a payment
schedule in response to a payment claim, regardless of how much was
Extended time limits will only apply if allowed for under the
However, these extended time limits will not
apply unless the relevant construction contract either expressly
allows for them, or does not specify a time by which payment claims
must be responded to.
This is because BCIPA says payment schedules must be served
within the earlier of the time specified in the
contract, or the extended time limits set out above.
Most contracts still require payment schedules or progress
certificates to be served within 10 business days of a payment
claim, in which case that shorter time limit will apply.
Extended Christmas shutdown period
The definition of "business day" in BCIPA now does not
include the period from 22 December to 10 January of any year.
Previously the definition of "business day" only excluded
the period from 25 December to 1 January.
The purpose of this amended definition is to reflect the
recognised industry Christmas shutdown period, and presumably, to
prevent respondents from having to respond to payment claims and
adjudication applications during that period.
However, as with the extended time limits for responding to
complex payment claims, the extended industry shutdown period will
usually only apply for the purposes of calculating time limits for
responding to payment claims if the contract expressly adopts the
new definition of "business day".
This is because payment schedules must be served within
the earlier of the time allowed for in the contract, or
the time limits set out in BCIPA.
If a contract requires a payment schedule or progress
certificate to be served within 10 business days, but does not
incorporate the amended definition of "business day",
then only the contractual definition of "business day"
will apply and respondents will not receive the benefit of the
extended Christmas shut down period.
Contractors and principals must amend their contracts to
benefit from BCIPA amendments
Contractors and principals who wish to get the benefit of the
extended time limits for responding to complex payment claims and
the extended Christmas shutdown period provided by the recent
amendments to BCIPA, must amend their contracts to expressly
The Council announced planning policies to encourage more inner suburban retirement village and aged care development.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).