Project Bank Accounts, BCIPA and Subcontractors’ Charges amendments to be implemented on 1 March and 1 July 2018

Yesterday, the Queensland government announced its four phase implementation plan for the commencement of the Building Industry Fairness (Security of Payment) Act 2017 (BIFSOPA). The Hon Mick de Brenni announced that BIFSOPA will be implemented as follows:

Phase 1

From 1 March 2018, the Project Bank Accounts (PBA) provisions will commence and will apply to all Queensland government tendered building and construction projects (excluding bridges, roads and ports) valued between $1 million and $10 million.

The government has established an “implementation and evaluation panel” to observe the implementation of Phase 1 PBAs and provide the Minister with periodic advice as to their effectiveness.

Phase 2

From 1 July 2018, chapters 3 and 4 of BIFSOPA involving the amendment and consolidation of the Building and Construction Industry Payments Act 2004 (Qld) (BCIPA) and the Subcontractors Charges Act 1974 (Qld) (SCA) respectively will commence. The new chapter 3 provisions replacing BCIPA will apply to all payment claims made after 1 July 2018, meaning that existing construction contracts will become subject to the new amendments.

Phase 3

From 1 January 2019, the Queensland Building and Construction Commission’s (QBCC) “minimum financial requirements” policy (repealed by the previous LNP government in 2014) will be reintroduced in the regulations to the BIFSOPA, giving the QBCC greater financial oversight of construction companies.

Phase 4

The Queensland government has announced a target date of 1 March 2019 for PBAs to be rolled out across private sector building and construction contracts over $1 million in value. This is subject to an independent review of the regime set to occur in September 2018.

How should you prepare?

We will be releasing a series of articles and updates over the coming months to ensure that our clients are fully prepared for the significant changes caused by the commencement of BIFSOPA.

In the meantime, we recommend that you:

  1. consider amending your contracts to encompass references to BCIPA (for claims pre-July 2018) and the equivalent provisions of BIFSOPA (for claims post-July 2018);
  2. familiarise yourself with the new timing requirements for submitting payment schedules and adjudication applications; and
  3. factor the new requirements into your processes and procedures, so that you are not caught out by invoices automatically constituting payment claims under the BIFSOPA, and the risks associated with the removal of the “second chance notice” for disputing a claim.

We are presenting a half day seminar and workshop on dealing with security for payment in a post-BIFSOPA world on Wednesday, 23 May 2018. For details and registration, visit

This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader’s specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.

Key contacts:

Stephen Pyman – Director | Principal
Christopher Rowden – Principal


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