The repeal of BCIPA – Strengthening safeguards to expeditious payment
In the last quarter of 2017, the Queensland Parliament passed legislation that will result in major changes to the construction industry.
The introduction of the Building Industry Fairness (Security of Payment) Act 2017 (the Act) will:
- Repeal the Building and Construction Industry Payments Act 2004 (BCIPA); and
- Introduce the concept of Project Bank Accounts (which will be dealt with in another article).
END OF BCIPA
The Act will, in the near future, repeal BCIPA, although its provisions will be replicated and enshrined in the Act. As the provisions of BCIPA currently provide for the management of payment disputes, their implication in the Act are further geared in favour of subcontractors pursuing a claim in relation to payment.
- The key changes in the Act to the existing BCIPA provisions can be summarised as follows:The definition of “payment claim” has been amended in such a way that it is no longer necessary for a payment claim to be explicitly endorsed with the words “This payment claim is made pursuant to the Building and Construction Industry Payments Act 2004”. A payment claim will satisfy the provisions of the Act if it:
- Identifies the location of the construction work to which the payment claim relates to;
- States the claimed amount of the payment claim;
- Requests payment of the claimed amount (as long as the payment claim bears the word ‘invoice’, this provision will be satisfied); and
- Explicitly states the date set for payment of the payment claim.
- A respondent must state any or all reasons for non-payment and/or part-payment of a payment claim in their payment schedule.
- A respondent is barred from raising any new reasons for withholding payment in their adjudication response, even for payment claims exceeding $750,000.00.
On a final note, BCIPA is still in-force, and we can expect the Act to take full effect later this year, thereby formally repealing the BCIPA.
If you have a payment claim that is outstanding or have been served with a payment claim and want to dispute it, please do not hesitate to contact the team at Irish Bentley Lawyers.