Progress payments
The Building Industry Fairness (Security of Payment) Act 2017 (BIF Act) provides processes for progress payments, payment claims, and supporting statements.
A contractor must submit a payment claim (which may be an invoice). This is a written request for payment for construction work or related goods and services delivered under a construction contract.
When a respondent receives the payment claim, they must either pay in full or give the contractor a payment schedule within a specific time frame.
Responding to payment claims—payment schedules
Under the BIF Act, a respondent must provide a payment schedule if they do not intend to pay the full claimed amount. A payment schedule is a written response to a payment claim, which:
- tells a contractor the amount they’ll be paid (the scheduled amount)
- provides reasons why the amount may be less than the amount claimed.
Failing to pay the scheduled amount by the due date is an offence and a maximum of 100 penalty units may apply.
Supporting statements
Head contractors must provide a supporting statement with every payment claim for construction work or the supply of construction related goods and services. This applies to all construction contracts where subcontractors have been engaged.
The supporting statement must declare that all subcontractors have been paid the amounts they are owed, or list all subcontractors who have not been paid in full, and give the reasons why.
Failing to provide a supporting statement or providing false or misleading information in the statement is an offence, and a maximum of 100 penalty units may apply.
Information about protecting payments in Queensland’s building industry, including payment claims and schedules, is available on the Queensland Building and Construction Commission (QBCC) website.