Amendments to Queensland Security of Payment Legislation
The security of payment regime in Queensland has undergone significant reform in recent years. Since the introduction of the Building Industry Fairness (Security of Payment) Act 2017 (Qld), the regime has remained the subject of scrutiny and review, resulting in the recent passage of the Building Industry Fairness (Security of Payment) and Other Legislation Amendment Act 2020 (Qld) ("BIFOLA Act"). The BIFOLA Act introduces significant changes such as the replacement of Project Bank Accounts with a new Project Trust Account framework and new protections for claimants where the respondent has failed to pay an adjudicated amount.
Under the reforms, head contractors will no longer be exempt from the requirement to hold an appropriate building licence and will be required to submit a supporting statement confirming payment of all subcontractors with any payment claim. The first of these reforms have already begun to take effect. With the amendments introducing additional penalties for noncompliance, it is imperative that all industry participants begin to familiarise themselves with the new regime.
To assist in preparing for the impending changes, this White Paper discusses the major reforms, the timing for their commencement and the potential practical consequences for your business.
