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Stakeholders in the Hospitality and other industries may be crippled by the effects of steps to prevent the spread of the coronavirus including by voluntary social distancing. Directors have personal liability for a number of business related obligations, making the decision to trade on through uncertain times a tough call. If you are finding it difficult to pay staff and normal fixed expenses or are concerned about the ability of your company to continue to trade through this unprecedented period, you may have options available to you. Getting advice early may make all of the difference, and in some circumstances can reduce the likelihood of director liability. Under the Corporations Act 2001 there are mechanisms available to companies that are experiencing financial difficulties to restructure and take steps to be able to continue to trade. These include entering into voluntary administration which can allow a corporation to try and trade out of its difficulties whilst placing a moratorium on creditors’ rights of recovering debts owed. We are experienced in all insolvency related matters and have the expertise to assist you in these difficult times. If you require assistance please contact our friendly staff and Justin Mathews Partner with our firm and a Queensland Law Society Accredited Specialist in Commercial Litigation at Justinm@qbmlaw.com.au or 075740111.

Contractors Working in New South Wales beware of significant changes to the Building & Construction Industry Security of Payment Act 1999 (“SOPA”) Significant amendments have been made to SOPA which came into effect on 21 October 2019. Under the new sections 13(1A) to 13(1C) of the SOPA “reference dates” have been abolished and the process for making a payment claim simplified. SOPA now provides that a payment claim may be made on and from the last day of the month in which work is done. If the construction contract provides an earlier date upon which a payment claim can be made, then the payment claim can be issued on that date. The contractor can also issue a payment claim to recover monies owing for work done up to the time of termination of a construction contract. The SOPA requires that in order to be valid, a payment claim must expressly state that it is a payment claim made under SOPA. The amendments to SOPA also make it plain what amounts can be included in a payment claim. Sections 13(5) and 13(6) of the SOPA now provide that a payment claim can include: a claim for more than a month’s work; an amount that has been the subject of a previous payment claim; an amount for work done in the previous month. There has been uncertainty as to the effect that liquidation of a construction company has upon its ability to enforce a payment claim and adjudication.  Section 328 of SOPA provides that a company that goes into liquidation cannot enforce a payment claim under SOPA and cannot pursue an adjudication. If you require assistance you can contact Justin Mathews, Partner of our office on (07) 5574 0111 or email justinm@qbmlaw.com.au.  Justin is an accredited specialist in commercial litigation and specialises in Building and Construction Litigation.

Beware Contractors of new amendments in pipeline for the Queensland Building Industry Fairness (Security of Payment) Act 2017 The amendments are likely to be passed and come into effect this year. Significantly the new amendments will entitle contractors who have obtained an adjudication award to register a charge over property owned by the other party or a related entity.  This could include lodging a charge over property owned by the contracting party and its directors. Stay tuned for these significant amendments to come into effect. If you require assistance you can contact Justin Mathews, Partner of our office on (07) 5574 0111 or email justinm@qbmlaw.com.au.  Justin is an accredited specialist in commercial litigation and specialises in Building and Construction Litigation.