Builders invited to weigh in on payment laws

A full evaluation of the Security of Payment Act will be carried out later this year, according to Fair Trading Commissioner, Rod Stowe.

Major changes were made to the Act in 2013 to ensure prompt payments for subcontractors through the contracting chain, protect retention monies and penalise contractors who provide false statements with fines or imprisonment.

In addition, in May 2015 a retention trust scheme was established, the first of its kind in NSW. This scheme applies to head contractors and their direct subcontractors for projects valued at $20 million or more. The scheme, administered by NSW Fair Trading, helps protect subcontractors’ retention money if a head contractor becomes insolvent.

Head contractors who fail to comply with these requirements face fines of up to $22,000.

Fair Trading wants to hear people’s views on how current laws are operating prior to the review and is inviting members of the building industry to participate in an online survey between now and 25 September 2015.

“The purpose of this survey is to find out what areas of the Act are of interest to industry groups and their members and will include topics such as recovery of progress payments and adjudication of disputes,” said Stowe.

“Under the law, any person who undertakes to carry out construction work or who undertakes to supply related goods and services under a construction contract is entitled to receive, and is able to recover, progress payments,” Stowe said.

“Following the survey, a full evaluation of the security of payment laws will offer the industry an opportunity to have their say on these laws in more detail.”

To participate, use this link.