Security of Payment
Fair Commercial Conduct
An additional section has been added to the QBCC Act regarding the avoidance of contractual obligations which cause significant financial loss.
This inclusion provides that a person who is a party to a building contract, must not, without reasonable excuse, cause another party to a building contract to suffer significant financial loss because the person deliberately avoids complying with, or fails to comply with, the contract. Breaching this section of the QBCC Act has a maximum penalty of 350 penalty units.
This is a new offence. Consultation has revealed that certain contractors deliberately and regularly avoid their contractual obligations, often causing significant financial loss to innocent parties.
This offence is particularly aimed at addressing conduct such as poor payment practices and deliberate avoidance of contractual obligations.