Are you a construction contractor? Learn about the strengthening of your rights when it comes to payment scheduling.
With the commencement of the Building Industry Fairness (Security of Payment) Act 2017 (Qld) during November 2017, the rights of contractors to receive progress payments for construction work were strengthened under the Security of Payment Legislation.
For principals or head contractors, the new Act attaches greater importance to the simple act of responding to payment claims issued by contractors.
Under the Act, a person who receives a payment claim must, within the relevant time frame (often 15 business days) either:
- if they agree with the amount claimed, pay that full amount; or
- if they disagree with the amount claimed, provide a ‘payment schedule’ to the contractor which complies with the requirements under the Act.
The payment schedule must tell the contractor the amount that they will be paid, and provide reasons for that amount being less than the claim.
Failing to provide a payment schedule is an offence under the Act, and may result in a maximum penalty of 100 penalty units (currently $13,345.00) as well as QBCC disciplinary action. It will also mean that the person is prevented from providing any response if the contractor elects to refer their payment claim to adjudication.
If you are currently engaged in a workers payment dispute or are looking to ensure that your current practices in respect of payments is compliant with the requirements of the BIF Act, Butler McDermott employment lawyers in Sunshine Coast can assist.