In the current high-risk environment of increased products, materials and transport costs, labour shortages and flood water impacts, it is critical subcontractors and suppliers take prompt and effective action to recover payment. Given the risks of insolvency, enforcement options that allow recovery from parties higher in the contractual chain assume greater importance.
The subcontractors’ charges provisions of the Building Industry Fairness (Security of Payment) Act 2017 (Qld) (BIF Act) offer Queensland subcontractors and suppliers a valuable tool to secure payment from parties higher up the contractual chain (Subcontractors’ Charges). By properly giving a QBCC Form S122 within the applicable time frames under the BIF Act, subcontractors and suppliers immediately become secured creditors (i.e. with priority over unsecured creditors in the liquidation scenario) by charging money in the hands of the parties higher up the contractual chain (eg. owners, developers and head contractors). Payment can be secured for invoices long overdue by use of retention only Subcontractors Charges which may be issued for 3 months after the end of the DLP under the head contract, long after completion of the subcontract work. This is a valuable tool for subcontractors to recover old debts.
Likewise, third party enforcement provisions of the Personal Property Securities Act 2009 (C’th) (PPSA) offer suppliers of plant, scaffold, formwork and other goods and equipment a valuable tool to secure payment from parties higher up the contractual chain (PPSA enforcement). PPSA enforcement provisions permit direct recovery payment from parties higher up the contractual chain where the supplier retains a valid security interest. Where priority PPSR registrations are in place, suppliers also increase their prospect of payment recovery in the liquidation scenario as priority creditors.
Troy Legal provides specialist legal advice to commercial construction clients in relation to payment recovery options, including from parties up the contractual chain ulitising subcontractors charges provisions in the QLD BIF Act and PPSA enforcement. Security of payment regimes also offer successful claimants at adjudication the option of securing payment from parties higher in the contractual chain (including financiers of head contractors under the BIF Act).
In the current high-risk environment of increased products, materials and transport costs, labour shortages and flood water impacts, it is critical subcontractors and suppliers take prompt and effective action to recover payment. Given the risks of insolvency, enforcement options that allow recovery from parties higher in the contractual chain assume greater importance.
The subcontractors’ charges provisions of the Building Industry Fairness (Security of Payment) Act 2017 (Qld) (BIF Act) offer Queensland subcontractors and suppliers a valuable tool to secure payment from parties higher up the contractual chain (Subcontractors’ Charges). By properly giving a QBCC Form S122 within the applicable time frames under the BIF Act, subcontractors and suppliers immediately become secured creditors (i.e. with priority over unsecured creditors in the liquidation scenario) by charging money in the hands of the parties higher up the contractual chain (eg. owners, developers and head contractors). Payment can be secured for invoices long overdue by use of retention only Subcontractors Charges which may be issued for 3 months after the end of the DLP under the head contract, long after completion of the subcontract work. This is a valuable tool for subcontractors to recover old debts.
Likewise, third party enforcement provisions of the Personal Property Securities Act 2009 (C’th) (PPSA) offer suppliers of plant, scaffold, formwork and other goods and equipment a valuable tool to secure payment from parties higher up the contractual chain (PPSA enforcement). PPSA enforcement provisions permit direct recovery payment from parties higher up the contractual chain where the supplier retains a valid security interest. Where priority PPSR registrations are in place, suppliers also increase their prospect of payment recovery in the liquidation scenario as priority creditors.
Troy Legal provides specialist legal advice to commercial construction clients in relation to payment recovery options, including from parties up the contractual chain ulitising subcontractors charges provisions in the QLD BIF Act and PPSA enforcement. Security of payment regimes also offer successful claimants at adjudication the option of securing payment from parties higher in the contractual chain (including financiers of head contractors under the BIF Act).
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