Building Industry Fairness (Security of Payment) Bill 2017

Overview

This bill overhauls how subcontractors get paid in Queensland's building and construction industry. It creates 'Project Bank Accounts' that quarantine money owed to subcontractors in trust, combines existing security of payment laws into a single Act, and gives the Queensland Building and Construction Commission stronger powers to tackle unlicensed work and illegal phoenixing.

Who it affects

Subcontractors and tradies working on Queensland building sites gain much stronger protection against non-payment, while head contractors face new trust account obligations and tough penalties for misusing the money. Homeowners and other customers also benefit from higher penalties for unlicensed and defective work.

Key changes

• Creates Project Bank Accounts - trust accounts holding subcontractor money separately from the head contractor, initially for state government projects between $1 million and $10 million
• Penalties of up to 500 penalty units and 1 year imprisonment for head contractors who fail to set up, or illegally wind up, a Project Bank Account
• Repeals the Building and Construction Industry Payments Act 2004 and Subcontractors' Charges Act 1974 and brings both schemes into one modernised Act
• Raises penalties for unlicensed building work to up to 350 penalty units and 1 year imprisonment for repeat offenders or tier 1 defective work
• Broadens the 'influential person' and 'excluded individual' tests to catch people who run companies through a spouse or nominee to avoid a previous licence cancellation
• Makes it an offence (350 penalty units) to deliberately avoid a building contract and cause another party significant financial loss
• Requires head contractors to notify subcontractors 10 days before a defects liability period ends so they can chase retention money that is owed