WA Construction Industry -
Subcontractor Payment Reform
In 2013,
the Western Australian Small Business Commissioner conducted an investigation
into the non-payment of subcontractors on construction projects administered by
Building Management and Works between 2008 and 2012. The final report was
presented to the Minister for Small Business in March 2013 with advice and
recommendations.
Integra Legal played a
crucial role in conducting this investigation, and the final report was
significant in driving a number of improvements and changes in the construction
industry, particularly in relation to the procedure for paying subcontractors.
Some of these changes are
coming to fruition. Changes to security of payment legislation to protect
subcontractors has been the topic of discussion recently from the
Attorney-General and Minister for Commerce, the Honourable John Quigley MLA,
and the Minister for Small Business the Honourable Paul Papalia CSC MLA.
The Minister for Commerce
has announced that his departmental staff are drafting a cabinet submission to
introduce imputed statutory trusts to present to cabinet in September. The
Minister for Small Business has introduced a Bill to expand the investigative
and reporting functions of the Small Business Development Corporation to ensure
the timely payment of subcontractors.
Both changes come in the
wake of the Federal Government's Review of Security of Payment Laws conducted by
John Murray in 2017 and the Security of Payment Reform in the WA Building and
Construction Industry Report conducted by John Fiocco in 2018.
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