Contractors in Western Australia are celebrating the passage of the Security of Payment Bill 2021 through state parliament this month.
The bill protects contractors in the building and construction industry. It gives contractors a right to claim minimum monthly progress payments to ensure subcontractors are not left with large outstanding invoices.
It also delivers an effective, rapid dispute resolution process to speed up the receipt of outstanding payments.
More than $6.9 million has been made available to raise awareness about the bill and provide training, education and compliance .
These measures improve the likelihood that, in the event of an upstream insolvency, contractors will have already been paid, as well as provide a strong dispute resolution process.
The regulator will have the power to remove registered building contractors with a history of ripping off subcontractors or those who engage in phoenixing.
This bill replaces the Construction Contracts Act 2004 (WA).