As a registered adjudicator under the Building Industry Fairness (Security of Payment) Act 2017 (“BIFA”) and partner, Justin Mathews, who also specialises in Building and Construction Law, sets out below some of the basic requirements of a payment claim to recover monies owed by subcontractors and contractors under construction contracts in adjudication under the BIFA.
The first step is that a valid payment claim must be properly served on the party who is liable to pay the progress claim under the construction contract.
An invoice is a valid payment claim provided it:
- Identifies the work with sufficient detail to enable the other party to know what work has been done;
- States the amount claimed.
Once a payment claim has been properly served (usually in the manner provided for in the construction contract) the other contracting party must serve a payment schedule within the time frame provided for in the construction contract, or if no time is specified in the contract, within 15 business days after receipt of the payment claim.
If no payment schedule is served, then an adjudication application can be filed to recover the amount payable in the payment claim pursuant to the BIFA.
If a payment schedule is served, then an adjudication application can be filed to recover the amount payable pursuant to the payment claim. There are strict time limits for the filing of applications that must be complied with otherwise an application cannot be made.
Applications are filed in the Queensland Building and Construction Commission.
In our experience, the procedure for recovery of monies owed to subcontractors and contractors in adjudication under the BIFA is far more cost effective and quicker than trying to recover monies through court process.
The procedure under the BIFA is designed to ensure an informal and swift recovery of monies owed to subcontractors and contractors to maintain and enhance steady cash flow.
However, the benefits of proceeding to adjudication can be lost if the requirements and time frames are not complied with under the BIFA.
Please do not hesitate to contact Justin Mathews of our office for assistance with respect to any construction contract dispute, advice in relation to adjudication under the BIFA and the recovery of monies owed to subcontractors and contractors on (07) 5574 0111 or email justinm@qbmlaw.com.au
