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BIFA – Amendment Act Update

As we discussed in our blog article BIFA- Amendment Act earlier this year, the Building Industry Fairness (Security of Payment) and Other Legislation Amendment Bill 2020 (Qld) (the Bill) was introduced to the Queensland Parliament on 5 February 2020 and referred to the Transport and Public Works Committee for review.

The Committee has now completed its report, and this was tabled to Parliament on 20 March 2020.  The Committee’s report and related information can be accessed here.

The Committee made 12 recommendations in relation to the Bill that:

  1. the Bill be passed;
  2. the Minister for Housing and Public Works review all definitions identified by stakeholders as having ambiguities and amend the legislation as appropriate;
  3. the Bill be amended to include measures to prevent the use of multiple contracts on the same or adjacent land in relation to contracts for small scale residential construction work;
  4. the Bill be amended to make it clear which parties are intended to be excluded by the exemption allowed in proposed new section 15E;
  5. terms used in proposed new section 15F be reviewed to ensure the intent is clearly articulated and amended as considered appropriate;
  6. clause 63 of the Bill (proposed new section 20) be amended to ensure that the account nominated by the subcontractor must be under the control of the subcontractor;
  7. the Bill be amended to ensure that all relevant contractors are protected by the trust regime;
  8. both the need for and location of proposed new section 55B(6) of the Bill be reconsidered and that the Bill be amended accordingly;
  9. section 42 and Schedule 1A(8) of the Queensland Building and Construction Commission Act 1991 (Qld) be amended to omit the exemption allowing an unlicensed person who enters into a contract to carry out building work, does not contravene section 42(1) merely because the person entered into the contract, if the building work is to be carried out by a person (an appropriately licensed contractor) who is licensed to carry out building work of the relevant class;
  10. the Queensland Building and Construction Commission Act 1991 (Qld) be amended to include ‘passive fire work’ in the definition of ‘fire protection’ during consideration of the Bill;
  11. that the Minister for Housing and Public Works considers undertaking a review of the role of property developers in the building and construction industry including consideration of the impact of their financial and operational capacity, ethical behaviour, and work practices; and
  12. should the review detailed in Recommendation 11 be conducted that it be conducted in consultation with industry stakeholders, and the Minister for Housing and Public Works should report the findings of the review by 1 July 2021.

The Bill was to have its second reading moved on 20 March 2020 but it appears that recent events have stalled this process.

We will keep you updated once the Parliament considers the Committee’s report and votes on the Bill.

If you have any question regarding how these proposed changes may impact you, please feel free to contact us to get in touch.

 

Disclaimer
The content of this blog article is intended to provide general information as a summary of the subject matter, which is current at the time of publication. It is intended for information purposes only and should not be regarded as advice. Specialist advice should be obtained about your specific circumstances before taking action on any issue dealt with in this publication.