Introduction of Payment Trusts to ensure sub-contractors are paid in full and on timeShare On
LANDMARK changes to the way the building industry in Queensland functions will begin to have affect from January 2018 with the introduction of payment trusts to ensure sub-contractors are paid in full and on time.
From January 1 project bank accounts will trialled for 12 months on government projects tendered between $1m-$10m before the scheme is rolled out across the private sector in 2019.
It aims to stop the practice of head contractors using subbies for cash flow, stringing out payments for as long as 120 days through manufactured complaints, the back dating of cheques.
“For far too long, subcontractors have had to shoulder most of the financial risk on building projects, but that changes today,” Mr de Brenni said.
“With these reforms, Queensland will have the strongest protections for subcontractors anywhere in Australia.”
Mr de Brenni paid tribute to Mr Wellington.
“It’s almost unheard of for the Speaker to vacate the chair in order to speak on a bill, and entirely unprecedented for an independent Speaker give such passionate support for a policy of the Premier and her government,” Mr de Brenni said.
“We are where we are today because of the dedication the Speaker Wellington has shown in standing up for his constituents after the 2014 (sic) Walton’s collapse, which sent so many subcontractors to the wall.
“I want to thank him for his tireless advocacy and for his support for people who make up Queensland’s building and construction industry.”
The reforms were driven by the Subcontractors Alliance formed after the 2013 Walton collapse which left Queensland subcontractors $30 million out of pocket and saw those working on the Nambour Coles project left unpaid $3m they were owed.
The Airconditioning and Mechanical Contractors Association, the Master Electricians Association and the Master Plumbers Association also threw their weight behind the reforms.
This article courtesy of Masonry Contractors Australia
Photo: SUBCONTRACTOR’S Alliance head Les Williams has driven the push for better security of payment for Queensland subcontractors. Photo Credit: Brett Wortman