Building and Construction Industry Payments Act
The Building and Construction Industry Payments Act 2004 (Payments Act) ensures that all parties in the contractual chain are given sufficient protection to receive payment for work undertaken. It applies to all commercial construction contracts, including the supply of related goods and services, in Queensland.
While the Payments Act does not cover residential building work, a subcontractor on a residential project can call upon the Payments Act to obtain payment from the contractor.
To gain protection under the Payments Act, you must adhere strictly to the provisions and procedures set out for progress payments, including payment claims, payment periods and payment schedules.
If you do not receive payment, and you have made your payment claim according to these provisions and procedures, you can take advantage of a payment dispute resolution process called ‘adjudication’.
Master Builders has prepared sample documents for use under the Payments Act, which members can modify to suit their own requirements.
These documents include:
- Payment claim
- Tax invoice (which can be used an alternative to the payment claim form)
- Payment schedule
- Adjudication application.
Download regulations currently in force related to the Payments Act:
Building and Construction Industry Payments Agency
The Building and Construction Industry Payments Agency (BCIPA) is a branch of the Queensland Building Services Authority, and is responsible for administering the Payments Act.
BCIPA provides the infrastructure to assist the Adjudication Registry, whose functions include the registration of Authorised Nominating Authorities and suitably qualified adjudicators. The registry also monitors relevant payment and contractual developments, and undertakes ongoing review and analysis of the operating laws, in order to ensure the Payment Act’s continuing effectiveness.
Visit the BCIPA website for more information.
Payments Act vs. Subcontractors’ Charges Act
Both the Payments Act and the Subcontractors’ Charges Act 1974 contain provisions to assist subcontractors in obtaining payment; however, substantial differences exist between the two acts.
In the event of a payment dispute, subcontractors must choose to utilise either the Payments or the Subcontractors’ Charges Act; they cannot have actions pending under both acts simultaneously.
You can also contact Master Builders for further advice and guidance.