23/02/2018 - 14:11

Government starts subbies pay review

23/02/2018 - 14:11

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The state government will review the security of payments for local subcontractors, while also establishing an industry advisory group, chaired by experienced barrister John Fiocco, to facilitate the review.

Bill Johnston says the government wants to improve the payment system for subcontractors. Photo: Attila Csaszar

The state government will review the security of payments for local subcontractors, while also establishing an industry advisory group, chaired by experienced barrister John Fiocco, to facilitate the review.

A number of industry stakeholders and public work agencies will be involved in the group, which will be focused on implementing industry-wide laws.

The group will complete an inquiry and consider amendments to the Building Services Act to create fairer contracting practices.

The former government passed legislation in 2016 protecting payments to subcontractors in the construction industry.

That legislation made it easier for subcontractors to access the rapid adjudication process for resolving construction payment disputes.

It also provided building contractors, subcontractors and suppliers with the right to be paid within a reasonable period of time, and a low cost method of enforcing that right.

Industrial Relations Minister Bill Johnston said the government wanted to improve the payment system for subcontractors.

"We're committed to ensuring a regulatory framework for the building industry that provides fairer contracting practices,” he said

"This is a complex industry problem and we are getting key industry players together to deliver practical solutions."

The group will be chaired by Mr Fiocco, with East Metropolitan Region MLC Matthew Swinbourn assisting him.

Mr Johnston said Mr Fiocco was highly regarded among the legal fraternity in Western Australia and widely experienced in commercial and contract law.

The first IAG meeting with industry stakeholders will be held next month.

The announcement comes after one of the state’s biggest buillders, Cooper & Oxley Builders, went into administration last month. 

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