Friday, 12 August 2016
Small Business Minister Sean L'Estrange said non-payment of subcontractors within the construction sector was unacceptable and required a whole of government response.
"Finance Minister Bill Marmion and I have met with subcontractor representatives and we acknowledge their specific concerns," Mr L'Estrange said.
The new measures include mandating from September 30, 2016, Project Bank Accounts (PBAs) on Building Management and Works construction projects valued between $1.5 million and $100 million.
Mr Marmion said Western Australia was the first State to trial PBAs and would be the first to roll them out more broadly.
"PBAs are an important measure for streamlining the payment process along the supply chain and improving transparency and accountability," he said.
"PBAs can shield subcontractors from 'phoenix' activity, where head contractors strip assets from the business before entering administration."
Mr L'Estrange also announced significant changes to Security of Payment legislation, including:
"The Government will back building industry productivity by reinforcing the need for adherence to the existing laws that apply to construction workplaces which help stamp out inappropriate and unethical behaviour," Mr L'Estrange said.
The Small Business Commissioner will have an expanded role in reviewing and mediating on disputes involving small businesses on Government projects.
The Government will also fund and establish a Building and Construction Compliance Unit within the Department of Commerce to monitor compliance with the Code of Conduct.