With effect from 17 December 2018 elements of the Building Industry Fairness (Security of Payment) Act 2017 (BIF Act) and amendments to the QBCC (Queensland Building and Construction Commission) Act commence.
The purpose for these changes and amendments means that it should be easier for both the Contractor(s) and sub contractor(s) to be paid for related goods and services in Queensland.
Any Contract that now exceeds a Limit of $ 1,000,000 the payments will be held, “In Trust”, by the QBCC and not the individual contractor.
Changes to retentions and defects liability period
These changes are included as amendments to the QBCC Act and mean that:
- Retention amounts or security held under a Contract must be released.
- There is an automatic twelve (12) month defects Liability period if the Contract is silent or doesn’t provide one.
- Contractors are required to provide notice of the end of the defects liability period.
As consumers, it’s prudent to ensure, that once they’ve entered into a Contract with their chosen Contractor(s) that the Contractor(s) provide a current “Certificate of Insurance” noting -:
- Current Contract Works & Combined Liability Policies noting Contract price, Contract details, adequate Policy Limit(s) and Sub Limit(s) of Liability for the Project.
- All required Named Parties noted accordingly.
As these amendments may now result in “split or staged” Contracts being “suggested” by Contractor(s), consultation prior to signing and finalisation of Contracts, with your Legal and Insurance specialist advisors would be prudent.
More information on the changes to Act are able to be viewed under the
Queensland Government Website Legislation Blog here.