Defects Liability Changes under new legislation

Did you know that the Building Industry Fairness Act (QLD) 2017(BIF Act) repealed the Building Construction Industry (security of payments) Act (QLD) 2004?

Amongst other key changes made the defects liability period notice for building and construction work was changed.

The BIF Act also made changes to the QBCC Act in relation to retention monies or security held under a building contract.

The BIF Act introduces:

• A statutory default defects liability period of 12 months from the date of practical completion, where a contract doesn’t provide a defects liability period;

• Penalties for not paying retention or security back to a contractor where there is no reasonable excuse at the end of the defects liability period;

• A requirement that a person withholding a retention under a building contract must provide a notice in the approved form notifying of the end of the defects liability period to the person whom a retention or security is being with held from;

Though this doesn’t apply to a contracting party who enters into a building contract as a principal.

---

This publication considers legal and technical issues in a general way. It is not intended to be legal advice. Any legal advice is qualified on the basis that the reader should immediately confirm the information relied upon with Merlo Law. We look forward to being of assistance.