Posted by LNA Master Landscapers Association
on 31 August 2015
HAVE YOUR SAY ON SECURITY OF PAYMENT LAWS IN THE BUILDING INDUSTRY
Fair Trading Commissioner Rod Stowe is inviting the building industry to participate in a new online survey on security of payment laws. "We want to hear people's views on how the security of payment laws are operating in this state before a full evaluation of the Security of Payment Act is carried out later this year," Mr Stowe said. "The purpose of this survey is to find out what areas of the Act are of interest to industry groups and their members and will include topics such as recovery of progress payments and adjudication of disputes." The survey, which can be accessed online at Click here will run until 25 September 2015.
Major changes were made to the Act in 2013 to ensure prompt payments for subcontractors through the contracting chain, protect retention monies and penalise contractors who provide false statements with fines or imprisonment. In addition, in May 2015 a retention trust scheme was established, the first of its kind in NSW. This scheme applies to head contractors and their direct sub-contractors for projects valued at $20 million or more . The scheme, administered by NSW Fair Trading, helps protect sub-contractors' retention money if a head contractor becomes insolvent. Head contractors who fail to comply with these requirements face fines of up to $22,000. "Under the law any person who undertakes to carry out construction work or who undertakes to supply related goods and services under a construction contract is entitled to receive, and is able to recover, progress payments," Mr Stowe said. "Following the survey, a full evaluation of the security of payment laws will offer the industry an opportunity to have their say on these laws in more detail." NSW Fair Trading will continue to work with industry to ensure builders understand their obligations. Media contact: 0408 734 586