The Leader of the Opposition questions the Finance Minister regarding payment security for subcontractors on the Perth Stadium project and why similar provisions aren't applied to all government projects. The Minister acknowledges variations due to project value and mentions a new project bank account initiative.

AnsweredQoN 475Legislative Assembly
Asked
30 June 2016
Portfolio
Finance

QuestionView source ↗

PERTH STADIUM — SUBCONTRACTOR PAYMENTS
475. Mr M. McGOWAN to the Minister for
Finance:
I refer to the security of payment
provisions on page 94 of ''The new Perth Stadium DBFM Project: Design,
Build, Finance and Maintain (DMFM) Project Agreement'', which states
that if —
... the State becomes aware that
Project Co has failed to pay an amount ... due and payable to a Subcontractor,
the State may then make that payment
directly to the Subcontractor ...
A further provision allows for
recovery of the amount from the head contractor.
(1) Do these provisions
illustrate the inept defence that the government has mounted when it claims
that payments to subcontractors working on government projects were ''a
very difficult situation to solve''?
(2) Why is the government treating
one project differently from other government projects?
(3) Will the
minister take immediate steps to implement similar arrangements in all current
and future contracts involving government projects; and, if not, why not?

AnswerView source ↗

I thank the Leader of the Opposition
for the question.
(1)–(3) As
he is aware, Building Management and Works handle contracts worth up to $100 million
and the Treasurer, through the Office of Strategic Projects, handles projects
worth over $100 million. That is why there is a bit of variation. As I said
before, Building Management and Works is looking at a new innovative project
bank account as a system of being able to look after payments to
subcontractors. That is what we are looking at doing as a solution.

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