Skip to content

  • Home
  • COVID-19 Guide
  • COVID-19 AV library
  • Client results
  • Expertise
  • News & Insights
  • People
  • Our DNA
  • Inclusion and Diversity
  • Join us
  • Contact Us
Home / NEWS & INSIGHTS / Insight / Watch this space: major reforms to construction legislation may be on the way
Insight 25 August 2017

Watch this space: major reforms to construction legislation may be on the way

WHO SHOULD READ THIS
  • All participants in the Queensland construction industry.
THINGS YOU NEED TO KNOW
  • The Queensland Government is proposing major reforms to a wide range of legislation which regulates the industry, including the security of payment regime and the Queensland Building and Construction Commission Act 1991 (Qld).
WHAT YOU NEED TO DO
  • Watch this space for further developments and consider how your business may be affected.

On Tuesday, the Queensland Government introduced a Bill which, if enacted, will significantly change the way in which Queensland construction projects are undertaken.

The Building Industry Fairness (Security of Payment) Bill 2017 (Bill) follows a consultation process with the Queensland construction industry, which included the release of the Queensland Building Plan and submissions from the industry on proposed reforms.

The Bill proposes sweeping changes to existing construction legislation in Queensland. It repeals both the Building and Construction Industry Payments Act 2004 (Qld) (BCIPA) and the Subcontractors’ Charges Act 1974 (Qld), and also contains amendments to the Building Act 1975 (Qld), the Plumbing and Drainage Act 2002 (Qld), and the Queensland Building and Construction Commission Act 1991 (Qld) (QBCC Act).

Key features of the Bill include:

  • Penalties. The introduction of penalties (including fines and possible imprisonment) for various offences, including the performance of unlicensed building work.
  • Project Bank Accounts. The introduction of Project Bank Accounts (PBAs) on certain building projects. The failure to establish PBAs on certain projects or administer them correctly may constitute an offence.
  • Payment claims. The removal of the requirement to endorse payment claims under the new legislation (as currently required under BCIPA), which means that all claims will need to be treated as statutory payment claims and responded to as such.
  • Payment schedules. Unless there is a reasonable excuse, the failure to respond to a payment claim with a payment schedule attracts a penalty and is a ground for disciplinary action under the QBCC Act. It also renders the respondent liable to pay the full amount of the claim.
  • Adjudication procedures. Different timeframes may govern the adjudication process. Respondents will no longer be able to raise new reasons for withholding payment in an adjudication response (regardless of the amount in dispute).
  • Adjudicated amounts. The failure by a respondent to pay an adjudicated amount by the due date may attract a penalty and disciplinary action under the QBCC Act.
  • Phoenix activity. Various amendments are aimed at preventing ‘phoenix’ activity, including strengthened provisions to exclude individuals from holding QBCC licences.
  • Security and retention. There are proposed provisions to regulate retention amounts.

We will be discussing these and other topical construction law issues at our upcoming 17th Annual Construction Law Conference in Brisbane on 14 September 2017. To register to attend, please click here.

This publication covers legal and technical issues in a general way. It is not designed to express opinions on specific cases. It is intended for information purposes only and should not be regarded as legal advice. Further advice should be obtained before taking action on any issue dealt with in this publication.

About the authors

  • Matt Bradbury

    Partner
  • Michael Rochester

    Partner

In other news

New Industrial Relations Laws – What it means for you

22 December 2020Insight

Payment Times Reporting Scheme

21 December 2020Insight

Australian Government proposes new broadcaster’s licence and forced investment quotas in Media Reform Green Paper

14 December 2020Insight

Verification of identity – does it always need to be in person?

6 December 2020Insight

VIEW ALL NEWS & INSIGHTS

BRISBANE

Level 11, 66 Eagle Street
Brisbane QLD 4000
GPO Box 1855
Brisbane QLD 4001
Tel +61 7 3233 8888
Fax +61 7 3229 9949

 

GET IN TOUCH

    Contact form

    We handle your personal information in accordance with our privacy policy.

    sydney

    Level 32, MLC Centre
    19 Martin Place
    Sydney NSW 2000
    GPO Box 462
    Sydney NSW 2001

    Tel +61 2 8241 5600
    Fax +61 2 8241 5699

     

    GET IN TOUCH

      Contact form


      We handle your personal information in accordance with our privacy policy.

      melbourne

      Level 27, 101 Collins Street
      Melbourne VIC 3000
      GPO Box 2924
      Melbourne VIC 3001

      Tel +61 3 9067 3100
      Fax +61 3 9067 3199

       

      GET IN TOUCH

        Contact form

        We handle your personal information in accordance with our privacy policy.

        follow us

        CLIENT LOGIN

        newcastle

        Level 2, 16 Telford Street
        Newcastle NSW 2300
        PO Box 394
        Newcastle NSW 2300

        Tel +61 2 4914 6900
        Fax +61 2 4914 6999

         

        GET IN TOUCH

          Contact form


          We handle your personal information in accordance with our privacy policy.

          canberra

          Level 9, 2 Phillip Law Street
          Canberra ACT 2601

          Tel +61 2 6243 3699
          Fax +61 2 8241 5699

           

          GET IN TOUCH

            Contact form


            We handle your personal information in accordance with our privacy policy.

            © 2017 McCullough Robertson. Site map Disclaimer Privacy Policy Credit Reporting Policy

            X