Timeframes under the Queensland Payments Act (BCIPA) [others are the same or similar]

Timeframes under the Payments Act are strict and must be strictly adhered to if the parties are to protect their respective entitlements in relation to payment.

Payment claim

The payment claim must be served on the reference date (or after the reference date but not
before) specified in the contract or the last day of the month if no reference date is specified in
the contract.

In a recent case the claimant faxed a payment claim (a tax invoice) which did not
include the copies of invoices and the time sheets referred in the payment claim. The
claimant, however, did confirm the payment claim, including the supporting documents, by post.
The judge found that the facsimile transmission was incomplete. The payment claim was
served when the respondent received the payment claim along with the supporting documents
sent via post.

Payment schedule

The respondent is required to serve a payment schedule within 10 business days of the date
the payment claim was served.

Adjudication application

If the respondent serves a payment schedule within the timeframe referred in the Act then the
claimant must lodge an adjudication application within 10 business days of the date the
payment schedule was served. If the claimant fails to lodge the adjudication application
within the prescribed timeframe then the adjudication application will be out of time and the
adjudicator may not have jurisdiction to decide the matter under the Act.

Notice of intention to lodge adjudication application

If the respondent does not serve a payment schedule within the prescribed timeframe then the
claimant must serve a notice of its intention to apply for adjudication within 20 business days
immediately following the due date for payment.

The notice must state that the respondent
may serve a payment schedule on the claimant within 5 business days after receiving the
claimant’s notice.

The claimant must lodge the adjudication application within 10 business days after the end of
the 5 day period referred in the notice.

The claimant must comply with the 20 business day timeframe failing which the adjudication
application may be invalid and the adjudicator may not have the jurisdiction to determine the
matter.

Notice of Intention to Suspend Work

If the claimant fails to pay the claimed amount where there is no payment schedule, or the scheduled amount, where there is a payment schedule, by the due date for payment, the claimant may immediately (on the next day) serve a notice of its intention to suspend work on the site.

If the respondent does not pay the amount due on the due date, the claimant may serve a notice to suspend work. The claimant may stop work after 2 business days of serving the notice.

When the respondent pays the amount due, the claimant must return to the site within 3 business days of receiving payment.

(Example: The due date for payment is Monday; Claimant issues a notice to suspend on Tuesday morning; Claimant stops work on Thursday morning. - Respondent pays the amount due on Monday; Claimant must start work on Friday morning.)
Ranjit Khosla, AIQSANA Adjudicator

Thepowertool helps the parties maintain the strict time schedules under the Act with calendar reminders for key dates in the payment process and by encouraging the parties to act via the simple and efficient online forms and notifications.