How are you coping with the changes that took place on 17 December 2018, with the introduction of BIF Chapter 3?
There is a minefield of information and a lot of changes to get around, however it appears to have had a positive impact on the subcontractor.
Here’s a little of what I know… “BIF Chapter 3” governs payment claims, payment schedules and the adjudication process. It also applies to all payment claims made from 17 December, even for contracts entered into before this date.
Failure to adhere to the new requirements can see penalties & fines imposed of up to $13,055 by the QBCC.
- Payment schedules must be given within 15 business days of receiving a payment claim (or earlier if provided for in the contract)
- High penalties (up to $13,055) may apply for failing to provide a payment schedule in response to a payment claim or for not paying in full by the due date (IMPORTANT: this relates to all payment claims from 17 December 2018, even for contracts signed prior to this date)
Serious new offences also came into force in the QBCC Act in relation to retention and the Defects Liability Period.
Failure to pay retention amount
All contractors who are holding retention under a building contract must, unless the contractor has a reasonable excuse, release the retention amount to the other party in accordance with the contract. Failure to do so attracts a maximum penalty of approximately $26,000 or one year’s imprisonment.
If you need to get up to speed (which everybody in the Building & Construction industry SHOULD), contact the Master Builders team of experts on 1300 30 50 10.