Written by Peter Waller – Special Counsel – QLS Accredited Specialist – Commercial Litigation at MBA Lawyers
The timeframes to take steps under the Queensland Security of Payment legislation (Building Industry Fairness (Security of Payment) Act 2017) are short and cannot be extended. If you miss a deadline, the consequences can be very costly.
Here are some examples:
1. If you receive a payment claim – you must give a payment schedule in response within the earlier of:
- 15 business days after the day a payment claim is given to the respondent; or
- the time limit specified in the contract for issuing a payment schedule.
2. If you receive an adjudication application – you must provide your adjudication response within the later of:
- 10 business days after receiving a copy of the adjudication application; or
- 7 business days after receiving notice that the adjudicator has accepted an adjudication application.
3. Due date for payment – if the contract does not provide for it – on the day that is 10 business days after the day a payment claim for the progress payment is made.
The timeframes under Security of Payment legislation are calculated by reference to business days.
However, the following dates are not counted as business day under the Act over the Christmas period – 22 December 2020 to 10 January 2021 (inclusive).
Under the Act, payment claims and adjudication applications can still be made and served, and the times to respond or take action may commence running, even if your office is closed for the Christmas period.
It is important to properly calculate the timeframes to take the required steps under the Act, particularly over the Christmas period, if you are giving or receiving a payment claim or an adjudication application.
How we can help
Peter Waller of our construction law team at MBA Lawyers can help you with claims under the Building Industry Fairness (Security of Payment) Act 2017, including with payment claims, payment schedules, adjudication applications and contract administration issues.