Building and Construction Industry Payments Act
The Building and Construction Industry Payments Act 2004 (BCIPA) 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 BCIPA 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 BCIPA, 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’.
Changes from 1 December 2014
The State Government has proposed changes to the Building and Construction Industry Payments Act 2004 to improve the effectiveness of this legislation.
Announced in April 2014, the Bill included three key reforms regarding the appointment of adjudicators by the Queensland Building and Construction Commission, changes to timeframes for making or responding to payment claims, and the introduction of a dual model for claims over or under $750,000 (excluding GST).
For further information please visit www.bcipa.qld.gov.au.
Master Builders has prepared sample documents for use under the BCIPA, 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(need to apply online through the QBCC website).
Download regulations currently in force related to the BCIPA:
Building and Construction Industry Payments Agency
The Building and Construction Industry Payments Agency is a branch of the Queensland Building and Construction Commision, and is responsible for administering the BCIPA and administering and processing adjudication applications.
The Agency provides the legislation to allow the Adjudication Registry to register suitably qualified adjudicators and receive and administer adjudication applications. The registry also monitors relevant payment and contractual developments, and undertakes ongoing review and analysis of the operating laws, in order to ensure the BCIPA continues to have 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.
It is important to remember that a choice has to be made in which recovery method to use. The Subcontractors’ Charges Act and BCIPA cannot be used to recover the same amount that is overdue.
You can also contact Master Builders for further advice and guidance.