Pre-Christmas commencement of the new Queensland security of payment regime

2 minute read  08.11.2018 Michael Creedon, Andrew Orford and Sarah Ferrett

Today, the Queensland Government proclaimed that Chapter 3 (and related provisions) of the Building Industry Fairness (Security of Payment) Act (Qld) 2017 will commence on 17 December 2018.

Chapter 3 replaces, and significantly amends the statutory regime for the adjudication of payment claims in Queensland under the existing Building & Construction Industry Payments Act (Qld) 2004, and will apply to all payment claims issued on or after 17 December 2018.

Associated provisions related to subcontractors’ charges and the adjudication registry will commence concurrently with Chapter 3, as will the supporting regulations prescribed under the Building Industry Fairness (Security of Payment) and Other Legislation Amendment Regulation 2018.

The second phase of Project Bank Accounts contemplated under the Act is excluded from the automatic commencement provisions and will separately commence by proclamation at a later date.

Terms of Reference, Evaluation Plan and proposed timeframes for the the Building Industry Fairness Reforms Implementation and Evaluation Panel have been released

In addition to the commencement of Chapter 3, the Department of Housing and Public Works this week provided an update on the Terms of Reference, Evaluation Plan and proposed timeframes for the the Building Industry Fairness Reforms Implementation and Evaluation Panel. This was established in June this year pursuant to the Act.

As outlined on the Department's website, the Panel's Terms of Reference are to determine:

  • the effectiveness of the government’s implementation of the suite of building industry reforms
  • the effectiveness of the legislative framework in achieving policy intent
  • opportunities to realise improved security of payment outcomes for industry prior to the commencement of project bank accounts in the private sector
  • the indicative economic impacts and outcomes of the building industry reforms.

The Panel is expected to deliver its report on those Terms of Reference by the end of May 2019.

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https://www.minterellison.com/articles/pre-christmas-commencement-of-the-new-queensland-security-of-payment-regime