3 November 2025
With fruit mince pies and candy canes invading supermarkets since September, Christmas will be here before we know it. During the holiday season, the money can flow out of your bank account faster than you can say ‘Saint Nick.’
That makes it more important than ever to ensure you get paid before you shut up shop for 2025 – and there are tools available to help resolve issues quickly and effectively.
Payment claims under security of payment
Contractors and suppliers of construction work or related goods and services can issue payment claims under the Building Industry Fairness (Security of Payment) Act 2017 (BIF Act). These claims can be made to developers, non-resident owners, investors, owner-builders, anyone contracting through a company or trust, builders, and subcontractors.
If the recipient doesn’t respond with a written payment schedule within 15 business days, including reasons for disputing the claim, they become liable to pay any undisputed amount.
QBCC Monies Owed Complaints
If a Queensland Building and Construction Commission (QBCC) licensee (including subcontractors and suppliers) owes you money and doesn’t dispute the claim, the Monies Owed Complaints process offers a fast, free solution. Licensed contractors who fail to pay undisputed debts on time can face serious consequences – including demerit points, licence suspension, or cancellation.
If you’re disputing a claim or invoice, make sure you do so in writing within 15 business days, outlining your reasons.
Adjudication
Where there’s a dispute over the amount owed – such as claims of defective work – the party seeking payment can apply for adjudication. This is a fast-track process, and non-compliance can be enforced by the QBCC.
Adjudication is available for disputes involving developers, non-resident owners, investors, owner-builders, companies, trusts, builders, and subcontractors. However, disputes involving residential owners must go through QCAT or the courts.
Master Builders also offers a free ‘without prejudice’ meeting service to help resolve issues before they escalate. You can also request to withhold funds while a dispute is being resolved.
Legal protections for contracting
Payment Terms
Builders and principals can’t override the BIF Act’s payment timeframes. ‘Paid when paid’ clauses aren’t enforceable, and tying payment terms to events outside your control – like aligning a subbie’s completion date with the principal’s – can delay payments.
Under the QBCC Act, payment terms are capped at 15 business days for licensed builders and 25 business days for subcontractors.
Unfair contract terms
The Australian Government has introduced penalties for businesses that include unfair contract terms in their standard contracts, and the ACCC will come after those that use them.
Risk management
Know your risks and red flags. The QBCC’s Industry Guide to Security of Payment Laws, and the Australian Small Business and Family Enterprise Ombudsman’s Better Help Guide – Small Business Debt are excellent resources.
QBCC oversight
The QBCC actively monitors financial conduct, conducts audits, and can demand financial records. Penalties include mandatory training and immediate licence suspension for high-risk licensees. These targeted measures are more effective than blanket rules like project trust accounts, which can burden everyone.
Need assistance with security of payment? Call Master Builders Members Legal on 1300 30 50 10.
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