Subcontractors' Charges Act
The Subcontractors’ Charges Act 1974 enables subcontractors to secure a statutory charge over money owed (or allegedly owed) to them by their contractor.
In effect, the charge is handed to the principal (owner) to secure disputed money away from the contractor. The money is then frozen pending a final resolution through the courts.
The Act is administered by the Queensland Building and Construction Commission.
Approved forms for the Subcontractors’ Charges Act
Approved forms have been created by the BSA for use with respect to lodging a notice of claim of charge and other processes under the Subcontractors’ Charges Act.
Download the approved subcontractors’ charges forms from the BSA website.
Subcontractors’ Charges Act vs. Payments Act
Both the Subcontractors’ Charges Act and the Building and Construction Industry Payments Act 2004 (Payments Act) 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 Subcontractors’ Charges or the Payments Act; they cannot have actions pending under both acts simultaneously.
Read more about avoiding and managing disputes, or visit the Building and Construction Industry Payments Agency website and the QBCC website for more information.
A subcontractor contemplating a statutory charge should seek advice by contacting Master Builders or a solicitor first.