❓ A member of parliament questions the Department of Housing regarding payment practices within its head contractor model for housing maintenance, particularly concerning subcontractors and sub-subcontractors. The Department's response indicates limited direct responsibility for payments beyond the head contractor level.
AnsweredQoN 8800Legislative Assembly
QuestionView source ↗
I refer to the Department of Housing's head contractor model of housing maintenance, and I ask:
(a) does the Department have a system or contractual requirement in place to ensure that a head contractor who has been paid for maintenance work by the Department must then pay the subcontractor for that work and if yes, how does the Department monitor and enforce this requirement;
(b) does the Department have any system or contractual requirement in place to ensure that subcontractors who are paid by the head contractor for work must then pay the sub-subcontractor and if yes, how does the Department monitor and enforce this requirement;
(c) what consideration or planning was given by the Department to ensure that all levels of contractors and subcontractors under the housing maintenance head contractor model would be paid and that there was accountability and transparency in this process;
(d) is the Department aware of reports that some housing maintenance sub-subcontractors are claiming to be owed considerable amounts of money (up to $200,000) for work performed under the head contractor model of housing maintenance;
(e) what is the Department doing to address non-payment issues by the head contractor to subcontractors;
(f) what is the Department doing to address non-payment issues by subcontractors to sub-subcontractors;
(g) who is liable under the head contractor model of housing maintenance if a head contractor or subcontractor has been paid for work but the subcontractor who actually performed the work has not been paid; and
(h) sub-subcontractors pursuing money owed to them report that they are told by the subcontractor that it is because the head contractor has not paid them. How are sub-subcontractors able to determine whether the head-contractor has paid the subcontractor for the money owed to them as sub-subcontractors, and what is the Department's obligation to enforce payment under this scenario?
(a) does the Department have a system or contractual requirement in place to ensure that a head contractor who has been paid for maintenance work by the Department must then pay the subcontractor for that work and if yes, how does the Department monitor and enforce this requirement;
(b) does the Department have any system or contractual requirement in place to ensure that subcontractors who are paid by the head contractor for work must then pay the sub-subcontractor and if yes, how does the Department monitor and enforce this requirement;
(c) what consideration or planning was given by the Department to ensure that all levels of contractors and subcontractors under the housing maintenance head contractor model would be paid and that there was accountability and transparency in this process;
(d) is the Department aware of reports that some housing maintenance sub-subcontractors are claiming to be owed considerable amounts of money (up to $200,000) for work performed under the head contractor model of housing maintenance;
(e) what is the Department doing to address non-payment issues by the head contractor to subcontractors;
(f) what is the Department doing to address non-payment issues by subcontractors to sub-subcontractors;
(g) who is liable under the head contractor model of housing maintenance if a head contractor or subcontractor has been paid for work but the subcontractor who actually performed the work has not been paid; and
(h) sub-subcontractors pursuing money owed to them report that they are told by the subcontractor that it is because the head contractor has not paid them. How are sub-subcontractors able to determine whether the head-contractor has paid the subcontractor for the money owed to them as sub-subcontractors, and what is the Department's obligation to enforce payment under this scenario?
AnswerView source ↗
Answered
6 November 2012
Responded by
Minister for Housing
Response time
41 days
The Department of Housing advises:
(a) Yes. The Department pays head contractors on a weekly basis to assist with payment of sub-contractors. A head contractor may be in breach of contract if it fails to pay sub-contractors. In a situation where a sub-contractor indicates they have not been paid, the Department would follow this up with the head contractor.
(b) No
(c) A change to the payment period from 28 to 14 days was adopted and implemented in the contract to ensure prompt payment to sub-contractors occurred.
(d) No
(e) Where issues have been brought to the Department's attention, information regarding non-payment has been requested to ascertain whether head contractors are aware of the issue and dealing with it.
(f) The Department has no legal ability to assist with any contractual disputes between sub-contractors and its sub-contractors. Contractual processes for monetary claims, usually through the Magistrates Courts, are readily available to a sub-sub contractor in these circumstances.
(g) The head contractor manages all payments to sub-contractors.
(h) The sub-subcontractors have no contractual agreement with the Department or the head contractor and must seek resolution in this matter through the sub-contractor. Advice can be sought through the Department of Commerce.
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(a) Yes. The Department pays head contractors on a weekly basis to assist with payment of sub-contractors. A head contractor may be in breach of contract if it fails to pay sub-contractors. In a situation where a sub-contractor indicates they have not been paid, the Department would follow this up with the head contractor.
(b) No
(c) A change to the payment period from 28 to 14 days was adopted and implemented in the contract to ensure prompt payment to sub-contractors occurred.
(d) No
(e) Where issues have been brought to the Department's attention, information regarding non-payment has been requested to ascertain whether head contractors are aware of the issue and dealing with it.
(f) The Department has no legal ability to assist with any contractual disputes between sub-contractors and its sub-contractors. Contractual processes for monetary claims, usually through the Magistrates Courts, are readily available to a sub-sub contractor in these circumstances.
(g) The head contractor manages all payments to sub-contractors.
(h) The sub-subcontractors have no contractual agreement with the Department or the head contractor and must seek resolution in this matter through the sub-contractor. Advice can be sought through the Department of Commerce.
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
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