Security of payment – Action Plan
Action Plan for Reform
An Action Plan for reform to introduce better payment protections for all participants in the Western Australian building and construction industry was released by the Minister for Commerce in September 2021.
What does the Action Plan do?
The Action Plan sets out a clear roadmap for how the important reforms in the Building and Construction Industry (Security of Payment) Act 2021 (the Act) will be implemented.
What’s in the Action Plan?
The Action Plan gives an outline of the major changes in the Act, who will be affected, brief guidance on what the reforms will mean for various businesses.
The Action Plan contains a three-stage implementation roadmap for the various part of the Act –
- Stage 1 (1 August 2022) – implementation of the new security of payment laws.
- Stage 2 (1 February 2023) – implementation of the first phase of the retention trust scheme and the new Regulator powers.
- Stage 3 (1 February 2024) – implementation of the second phase of the retention trust scheme and fairer contracting practices.
Each stage will be supported by industry education initiatives to assist businesses understand and adapt to the changes.
Consultation on supporting regulations
A consultation draft of supporting regulations to the new Act will be uploaded to the DMIRS website in due course. This is anticipated to occur in late 2021/early 2022.
All industry participants will be encouraged to consider the draft regulations and provide feedback.
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