New year, new changes. This is certainly true for the building and construction industry as it faces significant improvements thanks to the Building Industry Fairness (Security of Payment) Act.
The Act was first introduced to Parliament in August 2017 and received royal assent on November 2017. Set to take effect early this year, the Act aims to bring about significant reform to the security of payment for contractors in Queensland.
If you’re not quite familiar with this new legislation, we’ve come up with a quick overview of the things you out to know.
Essentially, the Act seeks to ensure that everyone in the building industry are duly compensated for the work they do. Its objectives include:
The Act discusses the mandatory use of Project Bank Accounts for certain construction projects. This regime will gradually be phased in over the next two years. It will begin with all Queensland Government building projects with the value of between $1 million and $10 million.
From the 1st of January 2019, all construction projects above $1 million, including those by commercial, private, and government sectors will be required to use the PBAs.
The Act modifies provisions of the Building Construction Industry Payments Act of 2004, implementing key changes to payment claims and payment schedules. Significant amendments are also done to streamline the adjudication process and to reduce delays caused by respondents.
Other significant changes include:
Moreover, the Act also outlines processes for dispute resolutions and for dealing with phoenix corporations.
Since the Act outlines several updates and changes, it’s crucial for business owners and other participants in this industry to start preparations as early as possible. You can do this by:
You can make this task easier by contacting our business development managers at Slater Byrne. We’d be happy to assist you.”
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