Construction Industry Annual Shutdown: A Break for Workers – Not Payment Obligations
As the construction sector heads toward the 2025–2026 holiday shutdown, developers and contractors are once again navigating the annual challenge of managing cashflow, contract compliance and project risk during the industry’s longest operational slowdown. While works may pause, payment obligations under the Building Industry Fairness (Security of Payment) Act 2017 (Qld) (BIFSOPA) certainly do not.
This article outlines the key statutory requirements that continue to operate over the shutdown period, how they interact with contractual payment processes, and practical steps to remain compliant and avoid costly disputes.
- Progress Claims: Payable When the Contract Says, Not When the Office Reopens
A common misconception during the December–January period is that payment obligations automatically shift into the new year. They don’t.
Under BIFSOPA, a progress payment becomes payable on the date stated in the contract. If your contract says a claim is payable on 24 December, then 24 December remains the due date—even if your team has closed for the holidays.
This means developers, principals and contractors must plan well ahead. Internal shutdowns, staff leave and reduced operational capacity won’t delay the deadline.
- What You Pay Is Determined by Your Progress Certificate
While the due date is dictated by the contract, the amount payable is governed by the amount certified in the progress certificate (or payment certificate under the contract).
BIFSOPA does not replace this process. Certification must still occur:
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- in the manner required by the contract, and
- within any contractual timeframe for issuing the progress certificate.
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If the contract gives, for example, 10 business days for issuing the certificate, this deadline continues to apply, based on the contract definition of a business day.
Failure to issue a progress certificate on time can significantly increase payment risk, as statutory consequences quickly come into play.
- Miss a Payment Schedule? You May Be Automatically Liable
The Act also spells out the consequences if a party fails to issue a payment schedule within the timeframe allowed under section 76.
If a developer or principal receives a valid payment claim and does not issue a payment schedule within time, then they become automatically liable to pay the full claimed amount to the head contractor—regardless of what would have been certified under the contract.
This is one of the most significant risks during the shutdown period, where oversight, understaffing or delayed internal approvals can easily result in a missed deadline.
Put simply:
No valid payment schedule on time = statutory liability for the entire claim.
This outcome cannot be cured by issuing a late certificate, a late schedule or a rejection after reopening.
- So, how does the “Blackout Period” apply?
The Christmas–New Year blackout period only applies to the parts of BIFSOPA that impose key statutory deadlines such as:
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- the time for giving a payment schedule but only if the contract does not provide a deadline itself
- the time for filing adjudication applications,
- responding to adjudications, and
- issuing notices after non-payment.
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Payment Schedules
If the contract says that a payment schedule must be submitted 10 business days after receipt of a payment claim and the contract does not define a business day to exclude the shutdown period, then the industry shutdown does not apply – the payment schedule is due 10 business days after receipt of the payment claim.
If the contract does not say when a payment schedule is due, then the section 76 of BIFSOPA and the Blackout Period apply – the payment schedule is due 15 business days after receipt of the payment claim, excluding any days that fall during the blackout period.
Most contracts in Queensland adopt the BIFSOPA definition of “business day”, which excludes the industry shutdown period. Still, it’s essential to confirm this in each contract, as differing definitions can materially alter risk and timing.
Adjudications
The blackout period does apply when calculating the deadline to submit an Adjudication Application and/or an Adjudication Response.
It means that because the days between 22 December and 10 January do not count when calculating these deadlines:
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- A contractor who receives a Payment schedule In December, is likely to have additional time to prepare an Adjudication Application; and
- a Developer or Head Contractor who is given an Adjudication Application in December is likely to receive additional time to prepare their adjudication Response.
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This makes it important to be strategic around when you decide to submit a payment schedule or payment claim.
- Practical Steps for Developers and Contractors Before the Break
To stay compliant and avoid unwanted adjudication battles in January, consider implementing the following:
✔ Prevention is better than a cure – get your contract right before you sign
Problems can be avoided by making sure the contract payment provisions and definition of business days suit your business needs, before you sign. Obtaining proper legal advice and representation at the time of contract formation and negotiation is not only common sense – its critical for avoiding costly mistakes and disputes later on.
✔ Review all contractually scheduled payment dates
Identify any progress claim due dates or certification deadlines that fall during the shutdown.
✔ Ensure certifiers and contract administrators remain available
Even minimal resourcing can prevent missed payment schedules and statutory liability.
✔ Diarise statutory deadlines that use “business day” calculations
The BIFSOPA blackout will extend these—but only these.
✔ Communicate early with subcontractors and head contractors
Clarify expectations about claim timing, certification availability and office closures.
✔ Prepare payment schedules before shutting down where possible
A proactive approach reduces risk and avoids scrambling after reopening.
Conclusion
The 2025–2026 shutdown period does not pause payment obligations. Developers and contractors who understand how BIFSOPA interacts with the contract—and how the blackout period actually works—can avoid statutory liability, adjudication exposure and unnecessary project disruption.
Now is the time to audit your processes, get legal advice, confirm your contract definitions, and ensure your payment certification systems remain functional throughout the holiday period. The Act may allow rest for work crews, but not for payment obligations.
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