Progress payment changes
Changes to the Building Industry Fairness (Security of Payment) Act 2017 (BIF Act) have commenced to improve the process for progress payments. These changes:
- make the process easier
- encourage payment.
This information outlines the changes for payment claims and payment schedules. Visit the Queensland Building and Construction Commission (QBCC) website for more information.
Supporting statements
From 1 October 2020, head contractors must provide a supporting statement with every payment claim for construction work or the supply of construction related goods and services. This applies to all construction contracts where subcontractors have been engaged.
The supporting statement must declare that all subcontractors have been paid the amounts they are owed, or list all subcontractors who have not been paid in full, and give the reasons why.
Failing to provide a supporting statement or providing false or misleading information in the supporting statement is an offence, and a maximum of 100 penalty units may apply.
See the QBCC website for more information.
Responding to payment claims—payment schedules
Under the BIF Act, a respondent must provide a payment schedule if they do not intend to pay the full claimed amount. A payment schedule is a written response to a payment claim, which:
- tells a contractor the amount they’ll be paid (the scheduled amount)
- provides reasons why the amount may be less than the amount claimed.
From 1 October 2020, failing to pay the scheduled amount by the due date is an offence and a maximum of 100 penalty units may apply.