Breaking News – Building Construction Law Update – New Security of Payment Commencement Date Announced
The Queensland Government has announced a timeframe for the implementation of the new security of payment regime under the Building Industry Fairness (Security of Payment) Act 2017 (“the BIF Act”).
In a media statement released on 12 June 2018, the Minister for Housing and Public Works, Minister for Digital Technology and Minister for Sport, The Hon Mick de Brenni, announced that the security of payment provisions under the BIF Act are to commence from 17 December 2018. You can find the complete media statement here.
Previously, it was expected that the provisions would commence on 1 July 2018. Please read our recent building industry update here for more information.
Until 17 December 2018, the Building and Construction Industry Payments Act 2004 and Subcontractors’ Charges Act 1974 will remain in force.
It is important to note the commencement date still requires proclamation by the Queensland Government and may be subject to further change. Stay tuned as we will release another industry update once this has occurred.
The amendments are part of a broader approach by the Queensland Government to regulate and reform Queensland’s $45 billion building and construction industry. These reforms also include the implementation of project bank accounts and the establishment of a regime to monitor non-conforming building products. Our update on non-conforming building product regulations can be accessed here.
Presently, project bank accounts only apply to government construction projects between $1 and $10 million with only 4 projects announced so far to fall within this regime. The broader implementation of project bank accounts to private construction projects will be considered after a government review scheduled for early 2019.
At this important turn point for Queensland building industry, it is crucial that contractors and developers are aware of the changes. If you require advice on the implications of these changes, please contact our construction team on (07) 3009 8444 or by email at [email protected]
Click here to read our latest building industry updates.