Chapter 3 of the Building Industry Fairness (Security of Payment) Act 2017 (Qld) was amended on 1 October 2020.

The main changes are:

1. Head contractors’ payment claims must be accompanied by a supporting statement declaring that all subcontractors have been paid, or stating which subcontractors are unpaid and why. Fines apply if the statement is not given;
2. It was already an offence to fail to give a payment schedule in response to a payment claim (unless the claim was paid in full). Now it is also an offence to fail to make a payment proposed in a payment schedule;
3. Subcontractors can require head contractors, and head contractors can require financiers, to retain (and can take a priority charge over) amounts payable but unpaid under adjudication decisions. Fines apply and they become liable for amounts that are not retained;
4. A head contractor who files an adjudication certificate in Court as a judgment may request a 24-month statutory charge over the property on which the construction work was carried out, and apply for an order that the property be sold to pay the amount charged in favour of the claimant and their costs in seeking the sale orders.

What to make of such significant change? We are here to help!

Rose Litigation Lawyers have specialist expertise in building and construction law. If you are in the industry, please contact our office for advice.