Security of payment
Queenslanders who work in our building and construction industry make an invaluable contribution to our communities and the economic prosperity of our state. They deserve to be paid for the work they do.
The Queensland Government led the way with security of payment reforms through the Building Industry Fairness (Security of Payment) Act 2017.
Following recommendations by the Building Industry Fairness Reforms Implementation and Evaluation Panel and the Special Joint Taskforce, the Building Industry Fairness (Security of Payment) and Other Legislation Amendment Act 2020 (the Act) was assented to on 23 July 2020.
The Act continues the government’s security of payment reforms with the following:
- Project Bank Accounts (PBA) will be replaced with a new trust account framework
- The trust account framework will streamline the PBA framework, oversight will be improved and the framework will be gradually phased into the private sector
- Head contractors will be required to provide a supporting statement with their payment claims declaring that all their subcontractors have been paid, or if they have not been paid, the reasons why
- Respondents will be encouraged to pay adjudicated amounts by:
- requiring them to advise the Registrar when payment is made and providing evidence of the payment
- giving all claimants the ability to issue a payment withholding request to the higher party of the respondent (including a financier)
- giving claimants who are head contractors the ability to place a charge over the property where the work was undertaken and to which the adjudication relates, (where the property is owned by the respondent or a related entity of the respondent)
- It will be an offence to underpay a scheduled amount.
Read more about these and other security of payment reforms which will be implemented to protect contractor payments:
- Project Bank Accounts
- New trust account framework
- Progress payment changes
- Adjudication changes
- Retention requirement changes
- Minimum financial requirements
Learn how to comply with security of payment laws on the Queensland Building and Construction Commission website.
Contact us with any queries at email@example.com.
- Last updated:
- 11 September 2020