Building and Construction Industry Update - Changes to BCIPA Passed By Parliament

6th November, 2014

BUILDING AND CONSTRUCTION INDUSTRY UPDATE 

CHANGES TO BCIPA PASSED BY PARLIAMENT

Members of the Queensland Law Society building and construction referral panel were recently advised that the Building and Construction Industry Payments Amendment Bill (2014) was passed by Parliament on 11 September 2014.

This bill contains significant changes to the Building and Construction Industry Payments Act 2004 (“BCIPA”).  It is likely the amendments will now commence in late October or early November 2014.

Key changes

Some of the key changes to BCIPA, which will largely only apply to contracts entered into after the commencement date, include the following:

1.   There will no longer be a “one size fits all” BCIPA regime with different time limits to apply for standard claims and new “complex claims” - claims over $750,000 or claims relating to latent conditions or time related costs.

2.   Once served with a complex claim, respondents will now have 15 business days to serve a payment schedule.  Respondents in complex claims will also have 15 business days to provide an adjudication response (with the ability to seek an additional 15 business day extension of time).

3.   For all other claims, respondents will still have only 10 business days in which to serve a payment schedule but will now have 10 business days in which to provide an adjudication response (an increase from the current 5 business days). 

4.   The time for serving a payment claim will be reduced from 12 months to 6 months after the date the construction work was last carried out or a longer period if provided for under the contract.

5.   Respondents in complex claims will no longer be required to include all grounds of defence in a payment schedule.  Grounds of defence not included in the payment schedule may now be included as grounds of defence in adjudication responses.  However, claimants will then have 15 business days in which to provide a reply to the additional grounds of defence.

6.   Rather than simply commencing proceedings to recover an unpaid portion of a payment claim as a debt, claimants must now give the respondent notice of their intention to start proceedings.  Respondents will then have 5 business days to serve a payment schedule.

7.   The Queensland Building and Construction Commission (“QBCC”) will now appoint adjudicators to adjudicate claims, rather than Authorised Nominating Authorities.

8.   To align with the building industry shutdown period, the period 3 business days prior to Christmas and 10 business days after New Year will not be counted as “business days” for the purpose of calculating BCIPA timeframes.

The changes to BCIPA are part of the Queensland Government’s reform of the building and construction industry.  Such reforms also included the replacement of the QBSA with the new QBCC earlier this year.  

The introduction of Queensland Building and Construction Commission and Other Legislative Amendment Bill 2014 will also likely see the repeal of the Domestic Building Contracts Act 2000 and marked changes to the Queensland Building and Construction Commission Act 1991 later this year.

We will keep you updated as these important changes are implemented. 

If you are involved in a building dispute or have any queries in relation to the legislative changes to the building and construction industry, including changes to the BCIPA regime, please feel free to contact Tony Scoglio or Robert Tooth on (07) 3833 2100 or by email at tony@scogliolaw.com.au.

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