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ARTICLE · 25 AUGUST 2013

Another hit for clients working on Qld mining leases trying to enforce payment for building work…

McKays Solicitors
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This was a most unwelcome decision for subcontractors and contractors trying to enforce payment on Qld mining leases.

AustraliaReal Estate and Construction
Ian Heathwood
Ian Heathwood

A Queensland Supreme Court Judge decided last week that subcontractors and contractors undertaking work on mining leases in Queensland, where the lease is granted under the Mining Resources Act 1989 (Qld), cannot use the Payment Claim system under the Building and Construction Industry Payments Act 2004 (Qld) (BCIPA) to enforce payment.

For subcontractors and contractors working in Queensland's mining industry, this is a most unwelcome decision.

Decision defeats purpose of BCIPA

When the various State Governments introduced Payment Claims legislation like BCIPA in Queensland, one of the main purposes of doing so was to free up the flow of cash in the building and construction industry and to rein in the practice of parties refusing to pay as a tactic to force others to accept less than they should receive.

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