BCIPA ALERT! Reforms Passed Yesterday
The Building and Construction Industry Payments Amendment Bill 2014 (Qld) has now been passed. The following important changes to BCIPA have now been enacted:
- adjudicators will now be appointed by the Queensland Building and Construction Commission (QBCC) Adjudication Registry;
- claims will now be classified as standard payment claims (up to $750,000) or complex payment claims (over $750,000);
- the following rules and timeframes will now apply to respondents in respect of complex payment claims:
- 15 business days to serve a payment schedule (or 30 business days if the claim is served more than 91 days after the reference date);
- 15 business days to submit an adjudication response (which can be increased by the adjudicator by up to a further 15 business days);
- entitlement to raise reasons for withholding in the adjudication response that were not included in the payment schedule;
- adjudication response times to standard payment claims have been increased from 5 to 10 business days;
- applications under section 19 have effectively been abolished – there is now a ‘second bite’ chance for respondents to serve a payment schedule;
- payment claims may be made for the return of retention and security; and
- the time for serving a payment claim following completion of the construction work has been reduced from 12 months to 6 months.
The above reforms will affect contracts entered into after the date of proclamation (the Act has not yet been proclaimed). However, the reforms relating to the appointment of adjudicators by the QBCC Registry will apply to all contracts from the date of proclamation.
Due to the nature of these changes both claimants and respondents will be affected. It is important to ensure that you understand the new time limits and other amendments and how they will affect you.
Please contact Mills Oakley’s Building, Construction and Infrastructure Team with any questions or queries you may have in relation to the new Act and to ensure that your business is adequately prepared to deal with these changes.
Contact Mills Oakley
Partner | Building, Construction & Infrastructure
T: +61 7 3228 0443