Security of Payment & Adjudication

Building and Construction Law

Key Takeaway

The Building Industry Fairness (Security of Payment) Act 2017 (Qld) (BIF Act) provides a statutory framework for securing progress payments for contractors, subcontractors, and suppliers in Queensland's building and construction industry. We provide comprehensive legal advice and representation throughout the entire security of payment process, from preparing and serving payment claims to responding to payment schedules and navigating the adjudication process. Our team has extensive experience acting for both claimants and respondents across residential, commercial, and infrastructure projects throughout Queensland.

The BIF Act replaced the former Building and Construction Industry Payments Act 2004 (Qld) and introduced significant reforms including project bank accounts and tougher enforcement mechanisms. Understanding the strict timeframes and technical requirements under the BIF Act is critical, as a single procedural error can invalidate a claim or compromise your entitlement. We help clients prepare compliant payment claims that maximise recovery, draft effective payment schedules to limit exposure, and represent parties in adjudication applications before authorised nominating authorities. Our team also advises on related QBCC complaints, suspension rights, and enforcement of adjudication decisions through the District Court of Queensland.

Payment Claims and Schedules under the BIF Act

Under the Building Industry Fairness (Security of Payment) Act 2017 (Qld), a person who carries out construction work or supplies related goods and services is entitled to progress payments. The process begins with serving a payment claim on the party liable to make payment. The claim must clearly identify the work performed and the amount claimed. Within 15 business days of receiving a payment claim, the respondent must serve a payment schedule detailing the amount they propose to pay (if any) and the reasons for withholding payment. Failure to provide a payment schedule by the deadline means the respondent becomes liable for the full amount claimed and loses the right to raise any defences in subsequent adjudication. Our team carefully reviews each claim to ensure compliance with the strict technical requirements of the BIF Act, including correctly identifying the reference date, properly describing the work, and using the approved form of payment claim where required. We also prepare detailed payment schedules that preserve your rights to dispute claims and raise legitimate offsetting amounts.

Adjudication Process and Enforcement

If a payment dispute arises, either party may apply for adjudication of the claim. The adjudication application must be made within strict timeframes: 30 business days after the payment claim is served (or 10 business days if the respondent fails to serve a payment schedule). The adjudicator is an independent expert appointed by an authorised nominating authority who determines the dispute based on the payment claim, payment schedule, and any further submissions allowed. The adjudicator's decision is binding and enforceable as a judgment of the District Court of Queensland, subject to limited review grounds. We provide robust advocacy in adjudication proceedings, preparing detailed submissions that clearly articulate your position and addressing any jurisdictional or technical issues that may arise. If the decision is not complied with, we assist with enforcement options including filing the adjudication certificate as a judgment, issuing enforcement proceedings, utilising the BIF Act's suspension rights, and pursuing related QBCC complaints.

QBCC Enforcement and Project Bank Accounts

The Queensland Building and Construction Commission (QBCC) plays a significant enforcement role under the BIF Act. Where a subcontractor or supplier is owed money for building work, they may lodge a complaint with the QBCC under section 71 of the QBCC Act 1991 (Qld). The QBCC can issue direction to pay notices, and failure to comply may result in licence suspension or cancellation. Additionally, the BIF Act introduced mandatory project bank accounts (PBAs) for government projects valued at $1 million or more and private sector projects valued at $10 million or more. PBAs require project funds to be held in trust, ensuring subcontractors and suppliers are paid promptly for work they perform. Our team advises on PBA compliance, trust account requirements, and the implications of the PBA framework for both principals and contractors. We also assist with retention sum trust account obligations, supporting statement requirements, and all other QBCC-related enforcement mechanisms available under Queensland legislation.

Security of Payment & Adjudication FAQs (Queensland Law)

What timeframes apply to payment claims under the BIF Act in Queensland?

Under the Building Industry Fairness (Security of Payment) Act 2017 (Qld), our team advises that a respondent must serve a payment schedule within 15 business days of receiving a payment claim. If the respondent fails to provide a payment schedule, they become liable for the full amount claimed. An adjudication application must be made within 30 business days after the payment claim is served (or 10 business days if no payment schedule was provided). The adjudicator must deliver their decision within 10 business days of accepting the reference.

What is the QCAT limit for building payment disputes?

At our firm, we represent clients before QCAT. QCAT has jurisdiction for building disputes up to $350,000 for major building disputes and $50,000 for minor building disputes under the Queensland Building and Construction Commission Act 1991. Security of payment adjudications under the BIF Act are separate from QCAT proceedings. Adjudication decisions are enforceable through the District Court of Queensland as if they were a judgment of that court.

How do I make a QBCC complaint for unpaid building work in Queensland?

If you are a subcontractor or supplier who is owed money for building work, you may lodge a complaint with the QBCC. Our team helps subcontractors recover debts. You may money for building work may lodge a complaint with the QBCC under section 71 of the QBCC Act 1991 (Qld). The QBCC can investigate and issue a direction to pay. Failure to comply may result in licence suspension or cancellation. The QBCC maintains a demerit points system for contractors who fail to meet financial obligations under building contracts.

Can I suspend work for non-payment under the BIF Act?

Yes, our team advises contractors on their rights under section 67 of the BIF Act. A claimant may suspend carrying out construction work if the respondent fails to pay an adjudicated amount. Our team helps clients exercise their suspension rights, and the suspension can continue until the amount is paid.

What are project bank accounts (PBAs) and when do they apply?

At our firm, we help head contractors and subcontractors comply with project bank account (PBA) requirements. PBAs are mandatory trust accounts under the BIF Act for Queensland government building projects valued at $1 million or more and private sector projects valued at $10 million or more. PBAs require project funds to be held in trust, ensuring subcontractors and suppliers are paid promptly for work performed. The head contractor must establish a PBA before commencing work, and amounts payable must be paid into the account within prescribed timeframes.

Security of Payment & Adjudication Services

Payment claim preparation and service under the BIF Act
Payment schedule responses and adjudication applications
Adjudication representation before authorised nominating authorities
Enforcement of adjudication decisions through Queensland courts
Suspension of work for non-payment under the BIF Act
QBCC complaints for monies owed in the building industry
Project bank account compliance and advice
Supporting statement preparation and lodgement
Adjudication review applications and appeals
Retention sum trust account compliance
BIF Act compliance audits for contractors and principals
Security of payment training for construction businesses

Last updated: July 2026

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