The BIF Act – protecting the building industry
The Building Industry Fairness (Security of Payment) Act 2017 empowers those working in the building industry to enforce their rights to be paid fairly and on time. One of these protections relates to progress payments under construction contracts.
Application
These rights regarding progress payment claims applies to most (but not all) construction contracts in Queensland. Notably though, it does not apply to standard residential building contracts, as domestic building work is regulated by the Queensland Building and Construction Commission Act 1991.
Do I need a written contract?
Whilst a written contract is always advisable (and required for some domestic building work), it is not necessary to have one in place in order to make a progress payment claim.
When can a progress payment be made
If there is a contract that stipulates how progress payments are to be made, then those timeframes will apply.
In the absence of any agreement, a progress payment can be claimed:
- At the end of the first calendar month of construction; and
- At the end of each subsequent calendar month.
What does the progress payment claim require
A progress payment claim under a construction contract must:
- Identify the construction work or related goods and services to which it relates;
- State the amount claimed from the principal contractor; and
- Request payment of this claimed amount.
Each element is essential. If any one or more requirements are not met, the progress payment claim may be unenforceable.
Identifying the construction work
The claim must adequately identify the construction work or related goods and services to which the progress payment relates so that it is reasonably comprehensible to the respondent. Some examples seen in previous case law:
- In MWB Everton Park Pty Ltd v Devcon Building Co Pty Ltd [2024] QCA 94, the claimant made a fairly broad claim against the respondent, claiming 5% of the plumbing across a 56 townhouse development. The court considered this to be too broad as the respondent could not adequately identify what construction work had occurred.
- However, in Starline Interiors Pty Ltd v Tomkins Commercial and Industrial Builders Pty Ltd [2025] QDC 63, the claimant had broken down each task by floor in a multi-story building – for example, they claimed that 79% of the base partitioning had been completed on level 14. This was deemed by the court to be adequate identification.
Stating the amount claimed
The claim must unambiguously state the amount claimed.
Requesting the payment
The claim must be a clear request for payment. Submitting an invoice that is clearly labelled as such is the most obvious way to do so.
In MWB Everton Park Pty Ltd v Devcon Building Co Pty Ltd, a document entitled a “Project Summary” was not held to be a demand for a progress payment, despite the document stating “amount due this claim”. The court’s approach was that this merely identified the amount due but did not actually request payment.
Starline Interiors Pty Ltd v Tomkins Commercial and Industrial Builders Pty Ltd dealt with the use of an app. The respondent required each contractor to use “Payapp” which did not allow the claimant to submit a standard invoice. However, upon entering the requisite information into this app, the app referenced an “amount claimed” which inferred that, upon entry and submission into the app, it became a request for payment. The court was satisfied in that instance that this entering work into this app was a request for payment.
When can a progress payment claim be made?
Unless there is a construction contract that says otherwise:
- An interim progress payment claim must be made within 6 months of the relevant work being completed or the relevant goods and services being supplied.
- A final progress payment claim must be made the later of:
- 28 days after the defects liability period ends; or
- 6 months after the work being completed or the goods and services being supplied.
How can notice be given
The BIF Act does not regulate how a claim must be made. Email would usually suffice. We recommend turning on ‘read receipts’ to avoid disputes over service.
When payment is to be made
The latest a progress payment claim can be paid to a claimant is:
- When contractually provided for (noting however there are legislative restraints on how long these periods can be); or
- 10 business days after the demand has been made.
When to engage a lawyer
You should immediately engage a lawyer if there is a dispute about a progress payment claim being validly made under the BIF Act, or if there is a dispute about the substance of the claim.
Our team at Swanwick Murray Roche regularly provides advice to the building industry and can provide expert guidance tailored to your situation. Contact us today.
This is general guidance only and not legal advice. You should seek legal advice before relying on anything included in this page. This information is correct as at the date of publication being 22.05.2025.