❓ Hon. Kate Doust questions the Minister for Finance regarding the protection of construction subcontractors and the status of the Construction Contracts Act, following a 2013 report highlighting payment issues. The Minister outlines measures taken but acknowledges limitations.
AnsweredQoN 316Legislative Council
QuestionView source ↗
CONSTRUCTION SUBCONTRACTOR INVESTIGATION —
REPORT
316. Hon KATE DOUST to the minister
representing the Minister for Finance:
I refer to the construction
subcontractor investigation report handed down in March 2013 and to the fact
that subcontractors are still not getting paid for work done on government
contracts.
(1) What has the
government done to enhance the protection of subcontractors and guarantee
security of payment?
(2) Why are
subcontractors in Western Australia still facing the same issues with head
contractors outlined in the 2013 construction subcontractor investigation
report?
(3) What is the
status of the Construction Contracts Act?
(4) What changes
have been put in place within Building Management and Works to ensure more
expedient dispute resolution processes since the report was handed down?
REPORT
316. Hon KATE DOUST to the minister
representing the Minister for Finance:
I refer to the construction
subcontractor investigation report handed down in March 2013 and to the fact
that subcontractors are still not getting paid for work done on government
contracts.
(1) What has the
government done to enhance the protection of subcontractors and guarantee
security of payment?
(2) Why are
subcontractors in Western Australia still facing the same issues with head
contractors outlined in the 2013 construction subcontractor investigation
report?
(3) What is the
status of the Construction Contracts Act?
(4) What changes
have been put in place within Building Management and Works to ensure more
expedient dispute resolution processes since the report was handed down?
AnswerView source ↗
I thank the honourable member for
some notice of this question.
(1)–(2) Following
the report titled ''Construction Subcontractor Investigation'',
the Department of Finance moved swiftly to implement the recommended measures
to improve security of payment for subcontractors working on its construction
projects, including strengthening its pre-qualification and risk assessment
processes, establishing a centralised complaints management system, providing
education to industry, conducting spot checks on subcontractor payments and
commencing the trial of project bank accounts. These measures work to improve
the timeliness and certainty of payments to subcontractors, but will not
prevent a head contractor from experiencing financial difficulty or entering
into insolvency. Likewise, they do not override a builder's legal right
to withhold payment in the event of a contractual dispute.
(3) The
independent review of the Construction Contracts Act 2004 and the government's
response are expected to be tabled in Parliament next month.
(4) The
Department of Finance is unable to intervene in a contractual dispute between a
head contractor and subcontractor as it is not a party to the contract. The
department provides support to subcontractors to resolve non-payment issues
when they do not arise as a consequence of a formal dispute.
some notice of this question.
(1)–(2) Following
the report titled ''Construction Subcontractor Investigation'',
the Department of Finance moved swiftly to implement the recommended measures
to improve security of payment for subcontractors working on its construction
projects, including strengthening its pre-qualification and risk assessment
processes, establishing a centralised complaints management system, providing
education to industry, conducting spot checks on subcontractor payments and
commencing the trial of project bank accounts. These measures work to improve
the timeliness and certainty of payments to subcontractors, but will not
prevent a head contractor from experiencing financial difficulty or entering
into insolvency. Likewise, they do not override a builder's legal right
to withhold payment in the event of a contractual dispute.
(3) The
independent review of the Construction Contracts Act 2004 and the government's
response are expected to be tabled in Parliament next month.
(4) The
Department of Finance is unable to intervene in a contractual dispute between a
head contractor and subcontractor as it is not a party to the contract. The
department provides support to subcontractors to resolve non-payment issues
when they do not arise as a consequence of a formal dispute.
Explore WA Government Data
Search the full archive in the free dashboard, or query programmatically via API.
Explore more
Government Gazette
Appointments, regulatory notices, planning changes.
Hansard
Debates, questions, speeches and sentiment.
Tabled Papers
Reports and documents tabled in Parliament.
Committees
Committee profiles and recent reports.
Regulations
Subsidiary legislation with filters and summaries.
Bills
Proposed laws and parliamentary progress.
Acts
Current WA legislation and summaries.
Explanatory Memoranda
Bills with EMs (text/PDF) available.
Members
MP profiles, party breakdown and rankings.
Pollie Rankings
Data-driven rankings across 19 categories.
Amendment Chains
Track how schemes and regulations evolve over time.