Thursday, 22 September 2016
The Construction Contracts Act 2004 provides a useful mechanism for resolving contractual payment disputes and provides building contractors, subcontractors and suppliers with a right to be paid within a reasonable period of time, and a low cost method of enforcing that right.
Introducing the Construction Contracts Amendment Bill 2016, Small Business Minister Sean L'Estrange said the legislation was the first part of a 'whole of Government' approach to improving payment protection for subcontractors.
It will enhance the operation of the scheme and make it easier for subcontractors to access the rapid adjudication process for resolving construction payment disputes.
"The non-payment and late payment of subcontractors, many of which are small businesses, is being addressed by the State Government," Mr L'Estrange said.
"This legislation will also be complemented by a Code of Conduct for contractors and the establishment of a compliance unit within the Department of Commerce to monitor compliance with the code. Other measures include the Small Business Commissioner having expanded power to review and mediate disputes between contractors and subcontractors.
"Plus, from September 30, 2016, the Government is rolling out Project Bank Accounts across Building Management and Works construction projects valued at more than $1.5 million to speed up the payment process for businesses working on these projects and enable subcontractors to better protect themselves in the event that a head contractor experiences financial difficulty."
Key aspects of the Bill include:
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