QBCC Tightens Rules For Building Contractors/Sub-Contractors To Be Paid On Time
Rede Accountants Gold Coast, Brisbane & Byron Bay
There has been a tightening up of terms and conditions for payment of contractors/sub-contractors within the building industry in Queensland.
Under the new rules a sub contractor submits a payment claim (an invoice generally) which sets out due payment terms in accordance with a signed contract. If there is no contract, due payment date within 10 business days after receiving the payment claim.
The contractor/payer then can either pay the claim within these time frames OR if they do not pay , provide a payment schedule within 15 days of receiving the payment claim (or the number of days set out in a contract). Failure by the payer to not meet these conditions may result in QBCC fines and/or Disciplinary action.
If the payer disputes a payment claim, they should set out their reasons in the payment schedule. If disputes cannot be resolved between the parties the sub contractor may refer the matter to The Adjudication Registrar. An Adjudicator will then be appointed to hear the matter.
Their decision is binding in a Court of Law.
To discuss this further contact Rede Accountants. Legal advice is also very important in these matters where payments are disputed or not made on a timely basis.