Court determines impact of security of payment legislation on mining-related construction works

A recent Supreme Court of Queensland decision demonstrates the importance for resources companies of understanding the role that security of payment legislation plays when carrying out mining-related construction works.

In Queensland, the Building and Construction Industry Payments Act 2004 (BCIPA) ensures that those who undertake construction work or supply related goods and services under a construction contract are able to receive progress payments for their work. The process for resolving payment disputes includes appointing an adjudicator, who only has jurisdiction if the contract in question is considered a construction contract within the meaning of BCIPA. There are some restrictions on the type of contracts covered by the legislation, including restrictions on certain works carried out on mining sites.