Member for Kiama Gareth Ward MP has today announced that sub-contractors would be better protected from late payments and insolvencies under proposed reforms released by the New South Wales Government.
Mr Ward said that changes to the Building and Construction Security of Payment Act will ensure contractors and sub-contractors are paid on time for their hard work.
“This proposal would hugely benefit the 300,000 people in NSW who work in the construction industry,” he said.
“When building and construction companies go out of business, it’s the sub-contractors and small business owners who really suffer because they’re left out of pocket.
“The construction industry is vital for the ongoing growth of our State, and this would make sure contractors and sub-contractors are properly protected when they take on a job.
“Under the reforms, contractors can make a payment claim at least once per month for work completed within that month, and a final claim where a contract has been terminated.
“Due dates for payments from head contractor to sub-contractor will be shortened from 30 to 20 business days, and for payments from principal to head contractor shortened from 20 to 10 business days,” Mr Ward said.
The NSW Government has also released a consultation paper on the creation of statutory trusts that building and construction companies would contribute to during a development, quarantining money that would be used to pay their sub-contractors.
The NSW Minister for Innovation and Better Regulation Matt Kean said consultation was an important part of the process.
“We want to hear the views of the industry and the community, and we will consider all of that feedback before any final decisions are made,” Mr Kean said.
The proposed amendments follow a complete review of the Act, which commenced in December 2015, and extensive consultation with industry stakeholders.
For more information, and to provide feedback, please visit the website at: www.fairtrading.nsw.gov.au.