Draft regulations to support Security of Payment laws released for consultation
Workers and industry urged to have their say between now and January 21, 2022
New laws to protect subcontractors start on August 1, 2022
The McGowan Government is asking for feedback on draft regulations to support landmark Security of Payment reforms for subcontractors in the building and construction sector.
Industry participants have until January 21, 2022 to provide input on supporting details of the Building and Construction Industry (Security of Payment) Act 2021, which is due to take effect from August 1, 2022.
The new legislation will offer better payment protections for all contractors working in WA's building and construction industry.
Reforms include faster payments, a more robust rapid dispute resolution process and improved protection of subcontractor retention money in the event of an upstream insolvency. The Building Services Board will also have powers to take action against builders who do not pay debts and those with a history of financial issues.
Education initiatives to help industry adapt to the new laws will get underway next year.
The draft regulations and explanatory materials are available on the Building and Energy website at https://www.commerce.wa.gov.au/publications/consultation-building-and-construction-industry-security-payment-regulations-2022-and
Public briefing sessions will also be held on the draft regulations. Bookings are available at https://www.eventbrite.com.au/e/industry-security-of-payment-regulations-2022-information-session-tickets-204946930787
The release of the draft regulations is part of the Action Plan for Reform: Better Payment Protections for Contractors in the WA Building and Construction Industry, which sets out how and when the security of payment reforms will be implemented.
Comments attributed to Commerce Minister Amber-Jade Sanderson:
"The new Security of Payment legislation will provide greater confidence and stability for all industry participants by protecting their right to prompt payment.
"The release of the draft regulations is the final step in the McGowan Government's extensive consultative process on these laws, which has included the draft bill and significant industry review.
"Industry input has helped to shape these reforms from the beginning and I encourage all parties to provide feedback on the regulations."