📋 Tender Overview
Building and Construction Industry Security of Payment Bill 2020 to be introduced into State ParliamentDelivering an election commitment to provide a fairer system for those carrying out construction work or supply related goods and services in WABill improves security of payment across the WA building and construction industry New laws to bolster the confidence of all participants in Western Australias building and construction industry by ensuring payment is made on time will be introduced into State Parliament.The reforms will promote business growth and innovation safeguard the livelihood and wellbeing of the Western Australians behind the States construction businesses and complement measures the McGowan Government has already delivered through the expanded use of Project Bank Accounts on government projects and enhancing the investigation powers of the Small Business Commissioner.In what is an Australian first the Building and Construction Industry Security of Payment Bill 2020 introduces a mandatory retention trust scheme. This will protect subcontractors retention money from being misappropriated or lost altogether in insolvency at each level of the contracting chain.The Bill also includes provisions to have registered building contractors with a history of ripping off subcontractors or engaging in phoenixing activity by driving a construction business into the ground and then re-emerging with a brand new business to be removed from the industry.Further it requires timely engagement in the payment process and imposes significant consequences for failure to do so. Principals will be required to pay head contractors within 20 business days of receiving a claim and head contractors will be required to pay subcontractors within 25 business days or any lesser period in the construction contract. Payment claims for certain residential-related construction work will need to be paid within the date specified in the contract or 10 business days if there is no date specified.
