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Laws introduced by the Liberal National Government to protect payments to subcontractors in the construction industry have passed State Parliament.
Small Business Minister Sean L'Estrange said the Construction Contracts Amendment Bill 2016 made it easier for subcontractors to access the rapid adjudication process for resolving construction payment disputes.
Mr L'Estrange said the new measures provided building contractors, subcontractors and suppliers with the right to be paid within a reasonable period of time, and a low cost method of enforcing that right.
"The amendments are aimed at producing immediate improvements to the security of payment for subcontractors and other operators in the building and construction industry, many of which are small businesses," he said.
"This legislation complements changes already implemented by the Liberal National Government to roll out Project Bank Accounts across Building Management and Works construction projects, valued at more than $1.5 million."
Commerce Minister Michael Mischin said the amendments reduced the maximum payment terms permitted in construction contracts to 30 business days, which would come into effect on April 3, 2017.
"The improvements are expected to deliver more prompt payment of subcontractors and increased cash flow in the building and construction industry," Mr Mischin said.
Other key changes, which will come into effect from December 15, 2016 include:
Fact File
Small Business Minister's office - 6552 6900
Commerce Minister's office - 6552 5600
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