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 What are the objective of the legislation?

Security of payment has been an issue in the building and construction industry over many decades, because it typically operates under a hierarchical chain of contracts with inherent imbalances in bargaining power. The failure of any one party in the contractual chain to honour its obligations can cause a domino effect on other parties resulting in restricted cash flow, and in some cases insolvency.

The objectives of the legislation are to ensure that a person is entitled to receive, and is able to recover, progress payments, if the person either undertakes to carry out construction work under a construction contract, or to supply related goods and services under a construction contract. It establishes a statutory-based system of rapid adjudication for the interim resolution of payment-on-account disputes involving building and construction work contracts. 


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© The State of Queensland (Building and Construction Industry Payments Agency) 2006.
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