Security of payment
The Queensland Government implemented security of payment reforms in the building and construction industry through the Building Industry Fairness (Security of Payment) Act 2017.
Following recommendations by the Building Industry Fairness Reforms Implementation and Evaluation Panel and the Special Joint Taskforce, the Building Industry Fairness (Security of Payment) and Other Legislation Amendment Act 2020 (the Act) was assented to on 23 July 2020. The Act is supported by:
- the Building Industry Fairness (Security of Payment) and Other Legislation Amendment Regulation 2020
- the Building Industry Fairness (Security of Payment) (Transitional) Regulation 2020.
The Act continues the government’s security of payment reforms with the following commencing from 1 October 2020:
- Head contractors must provide a supporting statement with their payment claims declaring that all their subcontractors have been paid, or if they have not been paid, the reasons why
- Respondents are encouraged to pay adjudicated amounts by:
- requiring them to advise the Adjudication Registrar when payment is made and provide evidence of the payment
- giving all claimants the ability to issue a payment withholding request to the higher party of the respondent (including a financier for head contractor non-payment)
- giving claimants who are head contractors the ability to place a charge over the property where the work was undertaken and to which the adjudication relates, (where the property is owned by the respondent or a related entity of the respondent)
- It is an offence to underpay a scheduled amount.
From 1 March 2021, Project Bank Accounts (PBA) will be replaced with a new trust account framework. The trust account framework will be gradually phased into the private sector and will be an improvement on the present PBA framework and improve oversight.
Read more about these and other security of payment reforms to protect contractor payments:
- Project Bank Accounts
- New trust account framework
- Progress payment changes
- Adjudication changes
- Retention requirement changes
- Minimum financial requirements
Learn how to comply with security of payment laws on the Queensland Building and Construction Commission website.
Contact us with any queries at email@example.com.
- Last updated:
- 4 November 2020