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News
BIF Legislation has commenced!
December 20th, 2018
A reminder that chapter 3 and chapter 4 of the Building Industry Fairness Act 2017 (“BIF”) commenced on 17 December 2018. BIF now applies to all payment claims for construction work, regardless of the contract date. BCIPA only applies to claims made before 17 December 2018.
Key changes:
- No requirement to include the words “This is a Payment Claim under the… Act”; an invoice or a ‘request for payment’ which describes the construction work and states the amount sought will be a valid payment claim.
- A respondent who receives a payment claim must either:
- pay the claim in full by the due date; or
- issue a payment schedule by the due date.
- A fine may be imposed for a failure to respond or pay.
- No ‘second chance’ to issue a payment schedule.
- New time limits for payment schedules and adjudication applications.
A snapshot of the important timeframes:
| Payment schedule Payment due date | The earlier of the period in the contract or 25 business days. As provided for in the contract[1] or 25 business days. |
| Adjudication application | 1. Payment schedule less than payment claim: 30 business days from payment schedule. |
| 2. No payment schedule: 30 business days from the later of payment due date or payment schedule due date. 3. Failure to pay full amount scheduled: 20 business days after due date. |
Particularly around the Christmas period, take care to calculate your dates correctly by checking your contract and the definitions of a business day in BIF.
For further details or assistance with giving or responding to a payment claim, or making or responding to an adjudication application, please contact our Senior Associate, Rowan Wilson on 4036 9700.
[1] Caution : A provision in a construction management trade contract or subcontract providing for payment of a progress payment later than 25 business days (QBCC Act 67U), or a provision in a commercial building contract providing for payment of a progress payment later than 15 business days (QBCC Act 67W) will be void, making the due date for payment under BIF 10 business days.
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