Following an article in our most recent newsletter, Options for Subbies following the Pro-Build Collapse, we received a number of enquiries from clients seeking advice and assistance. One question that a number of them asked was whether they had to wait until their invoice/payment claim was outside of the agreed terms of trade before they could issue a notice of claim (affectionately called the “subbie’s notice”).
The short answer is no: subcontractors engaged in building and construction work in Queensland do not have to wait for an invoice/payment claim to be overdue before they can issue a subbie’s notice.
Indeed, the legislation (the Building Industry Fairness (Security of Payment) Act 2017 (BIF Act) provides that a subbie’s notice can be issued even if the work the subject of the notice has not yet been completed (see section 122(4) of the BIF Act)
Subcontractors are granted very powerful tools under the BIF Act and subcontractors should not be hesitant in exercising their powers to ensure that they are paid their due entitlements for work completed or in the process of being completed in order to be able to meet their commitments to their employees/subcontractors/trade suppliers/etc.
We at Rose Litigation Lawyers regularly act on behalf of subcontractors in respect of the preparation and service of these statutory notices. If you have any questions in relation to this topic and would like to discuss how this may impact you or your business, please give us a call and we would be happy to assist.