Where a building contract is novated, the post-novation party who assumes contractual responsibility for completing building work (including work physically commenced by the predecessor) is the 'contracted party' for the purposes of s 67P of the QBSA Act and is entitled to statutory penalty interest on late progress payments for all work under the novated contract, without needing to distinguish between work performed before and after the novation date. The reference in s 12 of the BCIPA to a person who has 'undertaken to carry out construction work under the contract' refers to a contractual undertaking, not the physical performance of work.
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