News

Jul 17

Simplified Process for Builders and Tradies to Recover Debts

The Building and Constructions Industry Payments Act 2004 (Qld) (“BCIPA”) sets out a process for simple recovery of debts for those in the building and construction industry.

Builders and tradies are likely to issue several tax invoices for progress payment for work completed in stages, over the course of a building project.  If builders and tradies ensure that these tax invoices that are issued are done in the form of a “Payment Claim” under BCIPA, they can then access the simple recovery regime set out under BCIPA.

A Payment Claim is required to:

(a)                identify the goods and services to which the progress payment relates; and

(b)               state the amount of the progress payment claimed; and

(c)                state words to the following effect:  “This is a Payment Claim made under the Building and Construction Industry Payments Act 2004 (Qld)”.

A consumer who receives a Payment Claim then has a certain timeframe (generally, 10 business days, but will depend on the particular circumstances in each case) to respond to the Payment Claim by issuing a Payment Schedule.  The Payment Schedule sets out what amounts from the Payment Claim the consumer accepts are payable and what amounts are disputed and why.

After a Payment Claim is issued, a builder or tradie can apply for an adjudication of the Payment Claim with any number of BCIPA Agencies.  Adjudication is a process conducted by an independent adjudicator who reviews written submissions from both parties and comes to a determination at the end as to how much a consumer is liable to pay to the builder or tradie.  That determination can be enforced in the same way as a Court Order.  This process is generally quicker and more cost effective than Court Proceedings.

If you are a builder or tradie who would like more information about BCIPA, or a consumer who has received a Payment Claim from a builder or tradie, please contact McLaughlins Lawyers for more information.

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