After 15 June 2015, all payment claims submitted under the Building and Construction Industry Payments Act 2004 (Qld) (“BCIPA”) must be made within the later of:
- the period (if any) worked out under the relevant construction contract;
- 28 days after the end of the last defects liability period (if any) worked out under the relevant construction contract; or
- 6 months after the later of:
- the completion of all construction work to be carried out under the relevant construction contract; or
- the complete supply of related goods and services to be supplied under the relevant construction contract.
These deadlines will apply even if the construction contract was entered into prior to the amendments to the BCIPA, which came into force on 15 December 2014.
THE END OF THE TRANSITIONAL DEADLINE FOR MAKING PAYMENT CLAIMS
Prior to the amendments, a claimant had twelve months after the construction work was last carried out, or the related goods and services last supplied, to make a payment claim under BCIPA.
The amendments to the BCIPA which commenced on 15 December 2014, introduced a transitional provision (section 117). This allowed claimants twelve months to make a payment claim under a construction contract entered into prior to the commencement of the amendments, but only for the first six months after the amendments commenced. Therefore, this transitional provision expires on 15 June 2015.
The following hypothetical example demonstrates the effect of the expiry of the transitional provision:
- a construction contract was entered into on 1 June 2014, and contained no defects liability period;
- works were last completed under the construction contract on 30 September 2014;
- under the old version of the BCIPA, the deadline for a payment claim to be served for the works was 12 months after completion, namely until 30 September 2015;
- the amendments to the BCIPA commenced on 15 December 2014;
- under the transitional provision in the amended BCIPA, 30 September 2015 remained the deadline until 15 June 2015;
- however, after 15 June 2015, the deadline ceases being 30 September 2015, and reverts to 30 March 2015 (being 6 months after completion of the works); and
- the claimant’s accrued right to make a claim under the BCIPA on or before 30 September 2015 is therefore lost after 15 June 2015.
WHAT IT MEANS FOR CLAIMANTS
From 15 June 2015, unless the construction contract provides a longer deadline, payment claims under the BCIPA must be made within six (6) months after the construction work was last carried out, or the related goods and services were last supplied.
If the construction work was last carried out, or the related goods and services last supplied, prior to 15 December 2014, the claimant must make its payment claim under the BCIPA by 15 June 2015.