Queensland Consolidated Acts

QUEENSLAND BUILDING AND CONSTRUCTION COMMISSION ACT 1991 - SECT 67T

67T Lodgement of security to replace retention amount or security in money form

(1) This section applies if, under a building contract, the contracting party is holding—

(a) an amount (the
"relevant amount" ) as a retention amount; or

(b) a security in the form of an amount of money (also the
"relevant amount" ).

(2) The building contract is subject to a condition that—

(a) the contracted party may lodge with the contracting party a security, in the form of a government bond or a valuable instrument from an approved security provider, to take the place of the retention amount or of the security in the form of money; and

(b) on the lodging of the security, the contracting party must pay the contracted party the relevant amount.

(3) However, subsection (2) applies only if the value of the security lodged is equal to the relevant amount.

(4) If the contracted party lodges a security in the form of a valuable instrument from an entity that is an approved security provider, and the entity stops being an approved security provider, the contracted party must, if asked by the contracting party, lodge a further security, in a form mentioned in subsection (2) (a) , to take the place of the retention amount or of the security in the form of money.