A parliamentary question regarding protections for subcontractors on government projects, specifically addressing payment issues and potential policy reforms. The government acknowledges existing measures and upcoming reforms but clarifies the liquidator's role in insolvency cases.

AnsweredQoN 1083Legislative Council
Asked
6 November 2018
Portfolio
Commerce and Industrial Relations

QuestionView source ↗

SUBCONTRACTORS —
GOVERNMENT PROJECTS
1083. Hon RICK MAZZA to the minister representing the Minister for
Commerce and Industrial Relations:
I refer to the article of 24 October
in The West Australian titled, ''Rough road for State's
subbies'', featuring Brian Fisher of Brian Fisher Fabrications from Capel,
who says he is owed more than $330 000 on two state government projects.
(1) What systems
does the state government currently have in place for awarding contracts to
ensure that successful tenderers are able to pay the subcontractors they
employ?
(2) Will the
state government provide financial relief to subcontractors owed money for
government work undertaken by private contractors?
(3) Is the state
government satisfied that the statutory declaration process protects
subcontractors' payments?
(4) Is the state
government developing a new policy to protect subcontractors' pay; and,
if so, what will the new policy entail?
(5) If the state
government is developing a new policy to protect subcontractors' pay,
when is it anticipated to be finalised?

AnswerView source ↗

I
thank the honourable member for some notice of the question. On behalf of the
Minister for Regional Development representing the Minister for Commerce
and Industrial Relations, I provide the following answer.
(1) The
government has a range of measures in place to help reduce the financial risk
to subcontractors who are undertaking work for head contractors engaged on
government projects. These include project bank accounts and head contractor
prequalification arrangements.
(2) As is the
case with all construction contracts, in situations in which the head
contractor is facing insolvency, claims by subcontractors for money owed by
head contractors for completed work are the responsibility of the liquidator.
(3) No single
arrangement, including statutory declarations, can fully protect subcontractor
payments in situations of head contractor insolvency.
(4)–(5) Yes. Details of
proposed reforms are expected to be released early in 2019, if not earlier.

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