Interest rates and payment claims under BCIPA

Were you aware that overdue claims made under the Building and Construction Industry Payments Act (“BCIPA”) attract interest?

Furthermore, if your payment claim goes to adjudication, and you’re successfully, the adjudicator will usually make a ruling on the interest rate your overdue claim will attract.

This blog pot gives you further information on the claimant’s entitlement to interest as well as an explanation of the interest penalty rate in the Queensland Building and Construction Commission (“QBCC”) Act means in terms of adjudication in Queensland.

Entitlement to interest

A claimant’s right to interest on overdue payments is provided in Section 15(2) and(3) of BCIPA

Interest is not only applicable to the adjudicated amount in adjudication decisions but can also be claimed in progress claims in certain circumstances.

Where a payment claim is made under the BCIPA and the respondent fails to provide a payment schedule within the required timeframe under the BCIPA, the claimed amount is due and payable on or before the due date for payment (s19(2) of the BCIPA).

If the claimant does not proceed to adjudication in respect of this payment claim, the claimant is entitled to claim interest for each day of delay immediately following the due date for payment in subsequent payment claims.

The magic of s67P interest

In an age where the banks are offering annual deposit interest rates in the low single digits, the QBCC Act Section 67P penalty rates are generous at around 12.3% p.a. compounded daily.

Where applicable QBCC Act Section 67P provides a significant deterrent to respondents which wish to delay payment of progress payments.

Many claimants ignore their entitlement to interest in progress claims even where this can be a significant sum of money.

If you’re not claiming the appropriate interest rate on overdue payment claims, you’re doing yourself a financial disservice.

Get in touch for more information.

Adjudicate Assist is a specialist company dealing with all aspects of security of payment legislation throughout Australia and providing expert help to those wishing to utilise the Building and Construction Industry Payments Act. Get in touch today.

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.