Building payment review

A WA Government Taskforce has been established to review the payment practices of the building industry.

Works and Services Minister Rob Johnson established the taskforce which will recommend options to strengthen the financial stability of subcontractors and suppliers by March.

“The building and construction industry contributes significantly to the State’s economy and the core of the industry is comprised of specialist subcontractors ranging in size from single tradespeople to substantial companies,” Mr Johnson said.

“The future of the industry and the interests of the community are heavily dependent on the viability and financial stability of these businesses.”

He said building owners or head contractors who delayed payment at the beginning of the contracting chain could trigger severe problems for businesses at the end of the chain.

Mr Johnson acknowledged that clamping down on payment methods without adversely affect the flexibility and efficiency of the industry would not be easy.

The review will form part of the new Building Act which is being drafted to comply with the National Competition Agreement.

“It is now timely to review strategies for security of payment so that appropriate provisions can be integrated into the new and reformed legislative environment,” Mr Johnson said.

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