Who Jungle » 67P interest

Adjudication

BIF Act and QBCC Act

Section 73(3) of the BIF Act provides that the interest payable on an adjudication decision is 67P interest provided the claimant is within the parameters for 67P interest under the QBCC Act.

Essentially the work performed and goods supplied must:

  1. have been provided pursuant to a building contract;
  2. come within the definition of Building Work; and
  3. NOT be a contract between the entity claiming payment and a homeowner.

Residential and Domestic projects

If you are a Trade Contractor working for a Builder who is working for a Homeowner and you have performed Building Work you can claim 67P interest.

That is because the contract between the Trade Contractor and the Builder is classed as commercial work.

It is only the contract between the Builder and the Homeowner that is classed as domestic for the purposes of the QBCC Act.

It is usually domestic work if the Trade Contractor works DIRECTLY for the Homeowner in which case 67P interest will not apply

It is not automatic

If you do not specifically show that you are entitled to 67P interest and ask for it you will be granted the default interest under the Civil Proceedings Act which is very low and does not give you anything if you are paid within 21 days.

What words do I use.

Copy and paste the following words into your adjudication application.

You will then need to add additional information to tailor the paragraphs to your situation.

You will also need to delete some paragraphs that do not apply to your situation.

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Interest

The work was carried out for the purposes of a "Building Contract" (defined in schedule 2 of the QBCC Act) and is "Building Work "as defined in schedule 2 of the QBCC Act in that the work is:

****[NOTE 1: Delete the items that do not apply then delete this note and the comment at the end of this note.]***

(a)the erection or construction of a building; or
(b)the renovation, alteration, extension, improvement or repair of a building; or
(c)the provision of lighting, heating, ventilation, air conditioning, water supply, sewerage or drainage in connection with a building; or
(e)any site work (including the construction of retaining structures) related to work of a kind referred to above; or
(f)the preparation of plans or specifications for the performance of building work; or
(fa)contract administration carried out by a person in relation to the construction of a building designed by the person; or
(g)fire protection work; or
(h)carrying out site testing and classification in preparation for the erection or construction of a building on the site; or
(i)carrying out a completed building inspection; or
(j)the inspection or investigation of a building, and the provision of advice or a report, for the following—
(i)termite management systems for the building;
(ii)termite infestation in the building;

****[NOTE 1 END]***

The work performed by the Claimant is not excluded from the definition of Building Work by Schedule 1 of the QBCC Regulations.

DBCP means the domestic building contract provisions set out in schedule 1B to the QBCC Act.

The work is not domestic building work in that:

****[NOTE 2: Any one of the options below will turn domestic work into commercial work. Delete the items that do not apply and then delete this note and the comment at the end of this note.]***

  1. The project is not a single detached dwelling or a duplex. (Section 4 of the DCBP).
  2. The Respondent is not the owner of the Site (see the definition of “building owner” in section 1 of the DBCP).
  3. this matter relates to a contract between a contractor and a subcontractor. (Section 3(2)(a) of the DBCP).
  4. The contract is for the construction of 2 or more detached dwellings (Section 3(2)(b) of the DBCP).
  5. This matter relates to a contract between the holder of an owner- builder permit and an building contractor (Section 3(2)(c) of the DBCP)
  6. The owner is the State, an entity representing the State or a local government (Section 3(2)(d) of the DBCP);
  7. The Respondent is not a resident owner in that it is not an individual or intending to reside within the building. Site (see the definition of “resident owner” in section 1 of the DBCP).

****[NOTE 2 END]***

As a consequence the contract between the Claimant and the Respondent is a building contract as defined in section 67AAA of the QBCC Act for the purposes of part 4A of that act.

The contract does not provide for a rate of interest higher than that specified in section 67P of the QBCC Act.

In the premises the Claimant is entitled to interest pursuant to section 67P(3)(a) of the QBCC Act and section 73 of the BIF Act.

In light of the decision in Civil Mining & Construction Pty Ltd v Wiggins Island Coal Export Terminal Pty Ltd (No 3) [2018] QSC 60 (26 March 2018) the correct form of the order for section 67P interest is Interest on $[SUM OF MONEY] pursuant to section 67P of the Queensland Building and Construction Commission Act 1991.

It is not correct to specify a rate.

Accordingly, the Claimant requests that the decision concerning the interest payable be in the form Interest on $[SUM OF MONEY] pursuant to section 67P of the Queensland Building and Construction Commission Act 1991.

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