The Queensland Government has announced that its changes to the security of payment legislation will apply from 1 July 2018.
If you are a participant in the Queensland Construction industry, then this change will affect you! You need to understand how the changes to the security of payment legislation will affect the way your project is administered when dealing with claims for payment.
The major new change for subcontractors and trade contractors is that all invoices for construction work and related goods and services could potentially be payment claims.
Previously, you had a choice whether to use security of payment or not. Now there is virtually no choice.
This affects you in two ways:
- Your invoices could be valid payment claims, which means that the protections plus the new time frames for security of payment are triggered instantly.
- The invoices you receive from your suppliers and subcontractors are likely to be valid payment claims and you need to know how and when to respond with a payment schedule.
Your business will be affected in the following ways:
- How the payment terms in your contracts are going to affect you;
- Receiving payment claims and responding and/or paying in time;
- Sending paying claims and understanding how to send a valid payment claim;
- Understanding the new time frames for adjudication; and
- Understanding the new process for a debt due.
These are big changes that could cost your business significantly if you are not across what you need to be doing from an admin and contracts perspective.