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Master Builders members can use our holding account to facilitate resolution over a payment matter or to deposit money for security of payment.
The Master Builders holding account may be used in the following instances:
- Building contract containing a condition that a security for costs be deposited for an arbitration, as nominated by the President of Master Builders
- Current dispute matter
- Court or QCAT order stating specifically that the money is to be paid into the Master Builders' holding account
- Building contract containing a condition that disputed amounts may be paid into the Master Builders' holding account
- Direction of an arbitrator
- Administration of a building contract (such as security of payment provision).
Deposit money for 'safekeeping'
Members can use the holding account to avoid breach of the law or being left open to the risk of non-payment.
Accepting upfront payment for domestic building work in excess of $3,300 (including GST) breaches the Queensland Building and Construction Commission Act 1991 Schedule 1B and hefty penalties apply.
The QBCC Act places restrictions on amounts that a contractor can claim and the timing of claims:
- The deposit must not be more than 5% of the contract price where the contract price is $20,000 (including GST) or more
- If the contract price is less than $20,000 (including GST), the deposit can be up to 10% of the contract price
- Regardless of the contract price, if more than 50% of the contract price is for off-site work, the maximum deposit is 20% of the contract price
- If the contract is paid in instalments, the amount of each instalment (progress payment) must be directly related to the value of the work completed on the site.
If a client offers to pay you upfront, you can avoid breaching the QBCC Act by depositing the money (in excess of your deposit entitlement) into Master Builders' holding account for security of payment and then draw upon it as building works progress, if your client agrees.
Don’t place yourself in a situation where you are in breach of the law or left open to the risk of non-payment. Master Builders' holding account is available to members for use at no extra cost.
To use Master Builders' holding account, you'll need to complete the holding account deposit form.
When will money be released?
Monies held in the holding account will only be released by:
- Mutual consent of all parties
- Order of a tribunal or court
- Direction of an arbitrator
- Two years after deposit into the account if disputed money that is not subject of legal proceedings
- Two years after completion of works if security account money that is not subject of legal proceedings.
- Holding account deposit form
- Holding account deposit agreement conditions
- Holding account request for release of monies form
Use of Master Builders holding account over Christmas
Due to the Christmas closedown period, the Master Builders Holding Account will not be operational from the afternoon of Friday, 18 December 2020 until Monday, 11 January 2021.
No Deposit Receipts or Releases will be processed during this time.
If you need to use the Holding Account leading up to the Christmas closedown, you will need to allow sufficient time for a transaction to be processed. Any Deposit or Release Forms for processing must be received by Master Builders before 12 noon on Friday, 18 December 2020.
Any questions? Get in touch via email or call us on (07) 3225 6419.