The Building and Construction Industry Payments Act
2004 ("BCIPA") underwent
significant amendments which were passed by Parliament on 11
HERE TO VEIW OUR EARLIER ARTICLE ON THE AMENDMENTS
Since we last reported on the amendments to the BCIPA, the
Queensland Government has passed further amendments in answer to
concerns raised by stakeholders regarding timeframes and their
application to construction contracts existing prior to the
amendments coming into force.
The latest changes are as follows:
DEFINITION OF "BUSINESS DAY":
The 2014 amendments included a new definition of "Business
Day" to the effect that the period between 22 December and 10
January are not "Business Days" for the purpose of
calculating the timeframes under the BCIPA. The BCIPA now makes it
clear that the definition of Business Day applies to all payment
claims (and subsequent adjudications) issued after 15 December
2014, regardless of the date of the construction contract.
TIMEFRAMES FOR ISSUING PAYMENT CLAIMS:
The amending Act reduced the timeframe within which a payment
claim could be issued under a construction contract from 12 months
to a maximum of 6 months after construction works to which the
claim relates are completed or, for a final payment claim, 6 months
(previously 12 months) from the date of practical completion.
However, the additional amendments to the BCIPA, have the following
provisions which apply from 15 June 2015 (irrespective of the date
of the construction contract):
For payment claims (other than a final claim):
They may only be issued for a period of six months after the work
to which the payment claim relates was carried out.
For a final payment claim: They may only be
issued within the later of:
the period worked out under the construction contract;
28 days after the last defects liability period worked out
under the construction contract; or
6 months of completion of all construction works under the
construction contract or complete supply of the related goods and
The timeframes from 15 June 2015 therefore are as indicated in
the table at ATTACHMENT A.
Importantly, the old regime continues to apply for any payment
claim issued before 15 December 2014 and for which there are
outstanding steps to take (eg commencement of proceedings to
recover the payment claim as a debt). In all other respects
however, the new amendments will mean that from 15 June 2015, there
will be in place one set of timeframes and one set of procedures
for payment claims issued under construction contracts,
irrespective of when the contract was entered into.
EXTEND YOUR TIMEFRAMES
All timeframes in the BCIPA for serving or responding to payment
claims are expressed to be the "earlier of" or the
"later of" the time required by the construction contract
or the timeframe provided for in the BCIPA. It is therefore
possible for the parties to agree on the times within which payment
claims and payment schedules are to be served. This may be
particularly important to any contractor who may potentially be in
a position of having to respond to complex payment claims (ie
payment claims seeking payment of more than $750,000).
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.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Warranties can be risk-shifting mechanisms when the party giving the warranty is not the party at fault for the defect.
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).