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ARTICLE · 09 JULY 2013

Security of payment legislation may not apply to energy and resources projects

Clayton Utz
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Contractors might not be able to claim under the Security of Payments regime for work done on energy and resources projects.

AustraliaReal Estate and Construction
Frazer Moss
Frazer Moss
Chris Slocombe
Chris Slocombe
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Key Points:

Contractors might not be able to claim under the Security of Payments regime for any work done on an energy and resources project.

Whether security of payment (SOP) legislation applies to construction work performed as part of an energy or resource project may depend on the type of land tenure relating to the work site.

The recent Queensland Supreme Court decision in Agripower Australia Limited v J&D Rigging Pty Ltd [2013] QSC 164 (25 June 2013) concluded that contractors performing work for the leaseholder of a mining lease granted under the Mineral Resources Act 1989 (Qld) cannot claim progress payments or have disputes adjudicated under the Building and Construction Industry Payments Act 2004 (Qld) (BCIPA).

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