Chapter 3 of the Building Industry Fairness (Security of Payment) Act 2017 (Qld) establishes a statutory-based scheme for the speedy resolution of “payment on account” disputes involving contracts for construction work and the supply of related goods and services.
The chapter applies to construction contracts, whether written or oral, and whether expressed to be governed by the laws of Queensland or a jurisdiction other than Queensland. However, Chapter 3 of the Building Industry Fairness (Security of Payment) Act 2017 (Qld) does not apply to a construction contract to the extent it deals with:
- construction work carried out outside Queensland; or
- related goods and services supplied for construction work carried out outside Queensland.
But what if the related goods and services are supplied under a contract, agreement or other arrangement outside Queensland for construction work carried out inside of Queensland? You might be surprised to learn that Chapter 3 of the Building Industry Fairness (Security of Payment) Act 2017 (Qld) does apply to those related goods and services supplied outside of Queensland, so long as those related goods or services were supplied for construction work carried out inside of Queensland.
In Chapter 3 of the Building Industry Fairness (Security of Payment) Act 2017 (Qld):
- “construction contract” is defined to mean (among other things) a contract, agreement or other arrangement under which one party undertakes to supply related goods and services to, another party – regardless where in the world those related goods and services were supplied, so long as they were supplied for construction work carried out inside of Queensland;
- “Related goods and services”, in relation to the construction work, is defined to mean:
- goods that are:
- materials and components to form part of any building, structure or work arising from the construction work;
- plant or materials (whether supplied by sale, hire or otherwise) for use in connection with the carrying out of the construction work;
- services that are:
- the provision of labour to carry out the construction work;
- architectural, design, surveying or quantity surveying services relating to the construction work;
- building, engineering, interior or exterior decoration or landscape advisory services relating to the construction work;
- soil testing services relating to the construction work.
- goods that are:
Accordingly, a payment claim can be made under the Building Industry Fairness (Security of Payment) Act 2017 (Qld) by a party to a contract, agreement or other arrangement, in relation to construction work carried out inside of Queensland if that party supplies (for example, among other things):
- materials used in connection with the carrying out of the work, such as concrete, wood, steel, bricks, et cetera;
- labour hire;
- architectural or design services;
- decoration advisory services, such as selecting essential and decorative items to make indoor spaces functional, safe, and beautiful.
Call Rose Litigation Lawyers for more information about whether you can make a claim under Chapter 3 of the Building Industry Fairness (Security of Payment) Act 2017 (Qld).