The Queensland Government has passed important changes to the transitional arrangements in the Building and Construction Industry Payments Amendment Act 2014 (Amendment Act).

EXECUTIVE SUMMARY

The changes address concerns previously raised about the creation of a dual system for contracts entered into prior to the Amendment Act and those entered into afterwards. Under the new transitional arrangements the different timeframes and procedures for existing or new contracts will be quickly eliminated.

The Amendment Act is due to commence on a date set by Proclamation (which has not yet occurred).

Given the changes to broaden the application of the new definition of ‘business day’, which excludes any day occurring between 22 December until 10 January, it is likely the Amendment Act will commence before 22 December 2014 so the new shutdown period applies over the 2014 / 15 Christmas break.    

The Amendment Act was passed on 11 September 2014 and introduced changes in relation to the recovery of progress payments and the adjudication process under the Building and Construction Industry Payments Act 2004 (Qld) (BCIP Act) as discussed in our previous alert available here.

ACT WILL APPLY TO ALL CONSTRUCTION CONTRACTS

On 26 November 2014, new transitional arrangements were introduced[1] (Further Changes) so that the amended BCIP Act procedures willapply to all new payment claims, regardless of whether they relate to contracts created before or after the commencement of the Amendment Act. Limited transitional arrangements will apply for existing contracts in relation to payment claims already made and the time in which claimants can lodge a payment claim under the BCIP Act.

Previously, the amendments only applied to contracts entered into after the commencement of the Amendment Act (except for changes relating to Authorised Nominating Authorities (ANAs)).

KEY CHANGES

The key changes are outlined below. 

Click here to view table.