The due date for payment: getting it right!

Knowing your due date for payment sounds simple enough but surprisingly, many claimants calculate it incorrectly, and and are subsequently disadvantaged when their claim is disputed and they end up engaging the adjudication process.

Where to start.

The starting point for determining the due date for payment is the contract between the parties. Most standard written forms of contract will provide a specific time for payment following the service of the progress claim.

Where the contract provides a time for payment this must be read with reference to the provisions of the Building and Construction Industry Payments Act (“BCIPA”) Section 15.

This section of the legislation stipulates maximum payment terms for contractors and subcontractors to which the Queensland Building and Construction Commission (“QBCC”) Act applies.

When the Act and your contract conflict.

Where the period in the contract is in excess of the maximum permissible payment period under Section 67U (25 business days) & Section 67W (15 business days) of the QBCC Act, the payment terms default to 10 business days – the same date as the payment schedule is due for standard claims.

It doesn’t help that the definition of ‘business day’ under the QBCC Act and the BCIP Act are different (specifically the BCIP Act removes the dates between Christmas and New Years as valid business days)

Where the contract does not provide a time for payment the payment terms default to 10 business days.

When there is a valid payment terms.

Where the contract does provide a time for payment and the contract is not governed by the QBCC Act (for example: excavation, electrical work, supply of related goods and services) then the contract time for payment will apply.

Establishing the correct due date for payment is critical to serving a notice of intent to apply for adjudication (Section 20A(2) notice) under the BCIPA.

More help?

However, if you’re unsure of how to calculate the due date for payment of your payment claim, you’re welcome to contact us for assistance.

If in doubt – seek expert assistance from Adjudicate Assist.

Having the appropriate building licence is important

Having the correct building licence is vital if you are to be successful in construction adjudication.

In simple terms, if you need a Queensland Building & Construction Commission (“QBCC”) licence for the work that you do, then you will be unable to use the Building and Construction Industry Payments Act (“BCIPA”) to recover payments if you do not hold that building licence.

Houses

A recent Queensland Supreme Court judgement determined that the requirement to hold a building licence as a precondition to entitlement to use the BCIPA extends to licencing jurisdictions other than QBCC; e.g. Electrical licencing.

You may be surprised to know that a not uncommon problem is that whilst the individual owner of a company may be licensed, the company which is making the payment claim is sometimes not itself licensed, and therefore not entitled to receive payment under the BCIPA or otherwise.

Claimants must be clear as to the requirements to hold a specific building licence for the work that they do.

Generally speaking, even if your licence has been suspended or cancelled but you held a valid building licence at the time you carried out the relevant work, then you will be able to use the BCIPA.

If in doubt – seek expert assistance from Adjudicate Assist.

Help vital to successful adjudication

It has never been more important to seek help preparing for adjudication under the Building and Construction Industry Payments Act (“BCIPA”).

Help vital to success in adjudication

Monthly adjudication statistics published by the Queensland Building and Construction Commission (“QBCC”) for January 2016 indicate that approximately 31.5% of all adjudication applications made to QBCC are withdrawn before being referred to an adjudicator because of application validation issues. Additionally, 18% of all adjudication decisions released the adjudicator found that there was no jurisdiction.

Put another way, this means that approximately 40% of all adjudication applications made to QBCC do not result in any decision because of validation issues that could easily be avoided if expert help had been requested.

Claimants need to ensure that their applications tick all the boxes before being submitted, to avoid unnecessary disappointment and wasting of money on doomed adjudication applications.

Adjudicate Assist CAN help you!

Adjudicate Assist can offer assistance for the claimant or the respondent with the adjudication process by trained ADJUDICATORS.  All consultants are highly experienced in the adjudication process and are aware of the criteria required for recovering or defending payment under the Act – don’t settle for second best and be disadvantaged!

If in doubt – seek expert assistance from Adjudicate Assist.