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Your guide to the Security of Payment Act in Queensland

August 6, 2020
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Your guide to the Security of Payment Act in Queensland
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How to use the Security of Payment Act in Queensland to get paid for work you've done

In an ideal world, you'd be paid on time, in full, every time you worked for somebody. Sadly, that isn't always the case. As contractors and sub-contractors in the construction industry know all too well, getting the money you're owed can end up being more difficult than the work itself!

That's why all Australian states and territories have introduced security of payment acts. In Queensland, the official name for this act is the Building and Construction Industry Payments Act 2004. This act makes it much easier for contractors and sub-contractors in the construction industry to recoup outstanding payments.

If you're interested in the Security of Payment Act in QLD, read on to find out more about your rights. We'll also detail some of the legal hurdles you'll have to clear if you want to get a successful resolution.

Reach out to our team at AANDI Lawyers, and get the right result for your security of payments dispute. Find out how we can help you navigate the security of payments process.

Who is covered by the Security of Payment Act QLD?

Queensland's Building and Construction Industry Payments Act 2004 covers contractors who have:

  • Carried out construction work
  • Supplied goods or services under a contract for construction work

There is a time limitation on when a claim can be made. It must be served before whichever of the following comes later:

  • The period of time specified in the contract, or
  • Six months after the work (or provision of goods or services) was last carried out

In Queensland, how does the Security of Payment Act protect contractors?

Chasing unpaid debts through the courts can be time consuming and expensive. A security of payment claim is a speedy and cost-effective alternative. Rather than going to court, the claim is brought before an adjudicator.

How does Queensland's Security of Payment Act work?

There are strict requirements about what a claim must contain, when and how it can be served, and what responses a respondent can make to the claim.

First, make a security of payment claim

For a security of payment claim to be valid, it has to:

  • Make clear what the construction work was (labour, provision of certain goods or services)
  • Identify how much is being claimed
  • Directly state that it is a claim being made under the Building and Construction Industry Payments Act 2004
  • Be in writing

Then, receive a schedule for payment

After the claim has been made, the respondent has 15 days or a set amount of time specified in the contract (whichever comes first) to provide a schedule for payment.

This schedule for payment must also be in writing and must make clear how much the respondent intends to pay. If this is less than the amount claimed, the respondent must explain the discrepancy. These discrepancies can be evaluated by the adjudicator or, if necessary, the matter can proceed to court.

How is the Building and Construction Industry Payments Act 2004 in Queensland different to the security of payment acts in other states?

Every state and territory in Australia has its own security of payment act. These were all introduced at different times, have different names, and feature minor differences. Just because you know how to file a security of payment claim interstate doesn't mean it will be the same in Queensland.

For example, in Queensland a claim can be made up to 6 months after the work has been provided (unless otherwise specified in the contract) but in New South Wales a claim can be made up to 12 months after the work has been provided. In the Northern Territory, a security of payment claim can be made any time after the provision of work, in the absence of payment provisions in the contract. To get a good result, it's important that you know about the relevant differences in your specific jurisdiction.

If you're unfamiliar with the security of payment procedure in Queensland and want to make a claim, or respond to one, it's important to work with a legal team who know what they're doing and are looking out for your best interests.

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