If you entered into a contract in Queensland prior to the 15th of December 2014 your time to get paid using the Building and Construction Industry Payments Act (the Security of Payment Act) may expire on the 15th of June 2015.
If before 15th of December 2014 you agreed to do work under:
- An entirely verbal contract or
- A contract made up of a quote or a quote and a purchase order or
- A written contract that does not say you can make progress claims
and you did work more than six months ago, for which you have not been paid, if you do not issue your payment claim under the Act by the 15th of June 2015 you will lose your right to use the Security of Payment Act.
If you have a written contract and you did the work more than 6 months ago, your contract will need to be checked to make sure your time for using the Act will not run out on the 15th of June 2015.
This is because substantial changes were made to the Queensland Security of Payment Act on the 15th of December 2014. Under the Act before that date the time limit for making a payment claim was either:
- 12 months from the last day on which some of the work the subject of the claim was performed; or
- the period provided for under the contract,
whichever was the longer.
Under the new Act a payment claim can be served:
- If it is a progress claim within the later of:
1.1 the time provided for in the contract; or
1.2 six months after the completion of the work the subject of the claim.
- In the case of a final claim the claim can be served within the later of:
2.1 the period worked out under the contract;
2.2 28 days after the end of the defects liability period; or
2.3 six months after the completion of the work the subject of the claim.
On the 15th of June 2015, the time within which you can make a claim, will become the same for all contracts entered into in Queensland, no matter when they were entered into.
This means that your time for making a payment claim may be about to be reduced from 12 months to 6 months, unless your contract says something different. If you did the work more than six months ago you only have until 15 June 2015 within which to make a payment claim. If you do not, you will lose your right to make a payment claim under the Act.