SEQ flood recovery — tips for rebuilding and tradie register.
With the upcoming holiday period you need to be aware of how a business day is defined under the Building Industry Fairness (Security of Payment) Act 2017 (BIF Act) and how this definition may impact payment claims given and received.
Under the BIF Act a business day is any day that:
The last business day for 2024 is Friday 20 December and the first business day for 2025 is Monday 13 January.
It is important to be aware of these dates due to office closures, payment rights and obligations and the strict timeframes for some payment dispute processes that also involve this definition of business day.
You may be paid later than you were expecting. You should also consider the impact that this may have on timeframes for certain payment dispute processes.
You may have longer to respond to a payment claim received.
Reminder: Under the BIF Act, the default due date for a progress payment is 10 business days after a payment claim is given, unless otherwise stated in the contract.
A person that receives a payment claim and does not intend to pay the amount in full by the due date for payment should respond with a payment schedule. A payment schedule must be given within 15 business day or earlier if stated in the contract.
It is recommended that you communicate with the person that has given you a payment claim advising whether or not you intend to pay before the commencement of the non-business day period and why.
Examples of how the non-business day period impacts due dates for payment:
The QBCC recognises that a person’s home is likely to be their biggest asset, so it is reassuring to know that the nation-leading Queensland Home Warranty Scheme (QHWS) may help to protect owners if things go wrong.
QBCC Commissioner Anissa Levy says Queensland is the only state to offer first resort home warranty consumer protection cover.
“Customers can face many challenges when a construction company collapses and there are contracts and incomplete projects they need to navigate,” Ms Levy says.
“One of the reasons the QHWS is in place, is to help protect homeowners when something like this happens.
“Last financial year, the QBCC approved claims totalling $36 million under the QHWS.
“This money helps thousands of Queenslanders who have been left with unfinished projects, or if a builder has failed to rectify defective works, or if their building has been affected by subsidence or settlement,” Ms Levy says.
The QHWS extends coverage for incomplete residential construction work where the homeowner has paid a deposit, but work has not started. In these circumstances, the scheme may refund the deposit to the homeowner.
Where work has started the QHWS may cover completion of the work up to a maximum of $200,000. The level of assistance the scheme can provide will be assessed on a case-by-case basis.
There are certain eligibility requirements for a non-completion claim. The contract must be validly terminated within two years of work commencing on site, and the claim must be made within three months of the termination. Homeowners are encouraged to seek legal advice about their contractual rights and obligations. Commissioner Levy is also reminding homeowners that claims can take time.
“Every claim is unique and approval times for claims will vary, depending on a range of factors. Simpler claims can be processed quickly (for example, deposit refunds where no work has started). However, more complex non-completion claims require careful consideration and may therefore take longer to assess.
“In all other states in Australia, a consumer has to wait until the builder is deceased, insolvent or is otherwise non-contactable, before a homeowner can make a claim, or exhaust all other options via a court process,” Ms Levy says.
For residential construction projects, the QHWS provides claims coverage of up to $200,000 for incomplete work, and up to $200,000 for defective work or subsidence-related issues post completion.
The work is covered for a period of 6 years 6 months. Further information about the Queensland Home Warranty Scheme is available on the QBCC website.
Oracle Building Corporation Pty Ltd
Queensland homeowners who have a contract with Oracle Building Corporation Pty Ltd Homes and have paid a deposit can make a claim under the Queensland Home Warranty Scheme.
With the consent of the appointed liquidators, the QBCC cancelled Oracle’s QBCC licence on Friday, 26 August 2022. This will save homeowners time and money because all contracts between Queensland homeowners and Oracle are ‘at and end’.
Consequently, it is not necessary for homeowners to terminate their contract with Oracle prior to making a claim under the QHWS.
There are time limits that apply to coverage under the QHWS. Affected consumers have until Monday, 28 November 2022 to lodge a claim for refund of deposit or for completion of their home.
Non-completion claims lodged after this date will not be eligible for assistance.
On 26 May 2022, Pivotal Homes Pty Ltd (Pivotal), QBCC licence number 1110016, entered liquidation.
Worrells Solvency & Forensic Accountants Brisbane has been appointed as liquidator of Pivotal. The QBCC understands that the liquidator may have contacted parties who had executed contracts with Pivotal.
On 30 May 2022, the QBCC cancelled Pivotal’s licence and they are now prohibited from carrying out any building work, including completing work already in progress.
We have provided general information below, which may help you understand how their liquidation affects any building contracts you may have with them.
For information specific to your situation, we encourage you to contact us by:
If you are a home owner and have contracted with Pivotal, you may be able to make a claim under the Queensland Home Warranty Scheme (QHWS).
Where Pivotal had paid the insurance premium to the QBCC for your contract, you may be entitled to assistance if Pivotal has not completed the contracted works or if you have paid a deposit and building work has not started.
The steps below may help you work out your options in this situation.
For information specific to your situation, we encourage you to contact us by:
Your legal costs are not covered under the Queensland Home Warranty Scheme.
Your level of assistance will be determined by whether work has commenced.
As Pivotal’s QBCC licence is cancelled and they are in liquidation, all contracts currently on foot will be considered ‘at an end’ from 30 May 2022 under the QHWS Terms of Cover. You do not have to terminate the contract with Pivotal to make a non-completion or refund of deposit claim.
If building work is finished and there are defects, you need to know the time limits for making defective work claims.
The QBCC website contains information to help you understand more about how and when to make a claim.
You can email the completed Non-completion claim form (PDF) for residential construction work and supporting documents directly to ResolutionServicesPivotal@qbcc.qld.gov.au to lodge your claim.
Avoid unnecessary delays by including all supporting documents with your claim.
As Pivotal has entered into liquidation, the QBCC is unable to help you reclaim debts under the monies owed complaint process.
We recommend that you contact the Liquidator, Worrells Solvency & Forensic Accountants Brisbane, to discuss your debt or lodge a proof of debt.
Worrells Solvency & Forensic Accountants Brisbane
Level 13, 300 Ann Street
Brisbane Qld 4000
Telephone: 3225 4300
E: pivotalcreditors@worrells.net.au
You may also wish to consider if it’s appropriate to obtain independent legal advice about your debt.
The building and construction industry is one of Queensland’s most important sectors.
The Queensland Building and Construction Commission (QBCC) supports Queenslanders by: