Queensland Consolidated Acts

QUEENSLAND BUILDING AND CONSTRUCTION COMMISSION ACT 1991 - SECT 67P

67P Late progress payments

(1) This section applies if—

(a) the contracting party for a building contract is required to pay an amount (the
"progress amount" ) to the contracted party for the building contract; and

(b) the progress amount is payable as the whole or a part of a progress payment; and

(c) the time (the
"payment time" ) by which the progress amount is required to be paid has passed, and the progress amount, or a part of the progress amount, has not been paid.

(2) For the period for which the progress amount, or the part of the progress amount, is still unpaid after the payment time, the contracting party is also required to pay the contracted party interest at the penalty rate, as applying from time to time, for each day the amount is unpaid.

(3) In this section—

"penalty rate" means—

(a) the rate made up of the sum of the following—

(i) 10% a year;

(ii) the rate comprising the annual rate, as published from time to time by the Reserve Bank of Australia, for 90 day bills; or

(b) if the building contract provides for a higher rate of interest than the rate worked out under paragraph (a) —the higher rate.