Mr. Watson questions why the Department of Housing and Works didn't ensure Devaugh Pty. Ltd. could pay bills within 30 days for the Albany Justice Complex project. The Minister clarifies government policy and explains due diligence conducted.

AnsweredQoN 13Legislative Assembly
Asked
6 April 2005
Portfolio
Housing and Works

QuestionView source ↗

Could the Minister please advise why the Department of Housing and Works when letting the contract for the Albany Justice Complex Project didn’t ascertain if the successful bidder, Devaugh Pty. Ltd., could pay their bills within 30 days as is government policy?

AnswerView source ↗

Answered
21 June 2005
Responded by
Minister for Housing and Works
Response time
76 days
Government Policy is that the Government pays its bills within 30 days. There is no Government policy concerning construction contractors' payment times. However, the Construction Contracts Act 2004, which applies to the building and construction industries and took effect in contracts entered into as from 1 January this year, requires payment to be made within 50 days. This Act does not apply to the Albany Justice and Police Complexes because the contract was entered into prior to the Construction Contracts Act coming into effect. However, prior to awarding the Albany Justice and Police Complexes contract the Department of Housing and Works obtained payment performance data for Devaugh Pty Ltd from the Allied and Building Trades Association Credit Information Service. The data provided indicated that Devaugh Pty Ltd was generally paying its accounts within 60 days, which at that time was considered acceptable by the Department.
This Act does not apply to the Albany Justice and Police Complexes because the contract was entered into prior to the Construction Contracts Act coming into effect. However, prior to awarding the Albany Justice and Police Complexes contract the Department of Housing and Works obtained payment performance data for Devaugh Pty Ltd from the Allied and Building Trades Association Credit Information Service. The data provided indicated that Devaugh Pty Ltd was generally paying its accounts within 60 days, which at that time was considered acceptable by the Department.
However, prior to awarding the Albany Justice and Police Complexes contract the Department of Housing and Works obtained payment performance data for Devaugh Pty Ltd from the Allied and Building Trades Association Credit Information Service. The data provided indicated that Devaugh Pty Ltd was generally paying its accounts within 60 days, which at that time was considered acceptable by the Department.

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