Sub-Contractors and Reforms in the Construction Industry

We can assist you in the construction industry in any of the following areas:

• quick recovery of monies owing under both the Building and Construction Industry Payments Act 2004 (“BCIPA”) and the more recent Building Industry Fairness (Security of Payment) Act 2017 (“BIFSPA”);
• advice in relation to all aspects of construction contracts;
• notices of claims of charges to secure monies owing under construction contracts;
• licensing and review of decisions by the Queensland Building and Construction Commission (“QBCC”) to suspend or cancel licences for failing to meet financial requirements, and contraventions of the Queensland Building and Construction and Commission Act 1991.

Importantly, on and from 17 December 2018, claims for payment by sub-contractors are now governed by BIFSPA.  Major changes have been implemented under the new Act to assist sub-contractors to obtain a quick recovery of monies owing and security of payment for work done under construction contracts.

These changes include:

• shorter timeframes for lodgement of payment schedules;
• substantial penalties for non-lodgement of payment schedules and non-payment of monies owed to contractors and sub-contractors; and
• the right to issue a payment claim post termination of a construction contract.

In the experience of our building and construction lawyers, sub-contractors regularly need assistance in the following areas:

• a head contractor or developer refusing to pay and becoming insolvent;
• the QBCC issuing a show cause notice to suspend or cancel a sub-contractor’s licence;
• head contractors or developers trying to forfeit security and retentions under construction contracts;
• contractors and developers trying to set-off unsubstantiated claims for damages against payment claims and security and retentions under a construction contract;
• head contractors or developers challenging adjudication determinations in favour of sub-contractors;
• a sub-contractor not obtaining the appropriate advice before signing construction contracts with limited understanding or knowledge of the terms and conditions of the construction contracts.

Our firm’s Partner specialising in building and construction law and Queensland Law Society Accredited Specialist in Commercial Litigation, Justin Mathews, can assist in providing advice to you in relation to any of the above matters.  Please do not hesitate to contact Justin on (07) 5574 0111 or email justinm@qbmlaw.com.au.