QUEENSLAND BUILDING AND CONSTRUCTION COMMISSION ACT 1991 - SECT 67J
Set-offs under building contracts
QUEENSLAND BUILDING AND CONSTRUCTION COMMISSION ACT 1991 - SECT 67J
Set-offs under building contracts
67J Set-offs under building contracts
(1) The contracting party for a building contract may use a security or
retention amount, in whole or in part, to obtain an amount owed under the
contract, only if the contracting party has given notice in writing to the
contracted party advising of the proposed use and of the amount owed.
(2) The
notice must be given within 28 days after the contracting party becomes aware,
or ought reasonably to have become aware, of the contracting party’s right
to obtain the amount owed.
(3) If, because of subsections (1) and (2) , the
contracting party is stopped from using a security or retention amount, the
contracting party for the contract is not stopped from recovering the
amount owed in another way.
(4) This section does not apply if, under the
contract—
(a) work has been taken out of the hands of the contracted party
or the contract has been terminated; or
"amount owed" , under a building contract, means an amount that, under the
contract, is a debt due from the contracted party for the contract to the
contracting party for the contract because of circumstances associated with
the contracted party’s performance of the contract.
"use of security or retention amount" includes the act of converting
securities into cash where the securities are held as negotiable instruments.