Feb 15, 2016

Spotlight on security of payment

Spotlight on security of payment

Subcontractors across Queensland have an opportunity to provide input into a State Government Security of Payment discussion paper.

A road show rolled into Nambour and Maroochydore on January 28 with Housing and Public Works Minister Mick de Brenni in attendance to explain the purpose and aims of the discussion paper.

By the time the road show is completed in Rockhampton on March 17, 21 sessions will have been staged from Gold Coast north to Cairns and west to Mount Isa.

The discussion paper has a number of options for the public to consider:

  1. Project bank accounts: A project bank account facilitates simultaneous payments of a project’s head contractor and all participating subcontractors through a trust arrangement.
  2. Retention trust fund scheme: This option requires subcontractors’ retention money to be held in a separate trust account.
  3. Insurance schemes: This option includes a range of insurance schemes to safeguard against defects, late completion and insolvency of contractors.
  4. Federal legislative changes: This option seeks to lobby the Commonwealth Government for reform to legislation relating to security of payment.
  5. Education: This option proposes education for the building and construction industry stakeholders regarding matters such as financial management, contract management and protection of their rights.

Mr de Brenni said getting the right outcome would instil further confidence in the building and construction industry, and better protect Queensland’s small business operators.

He said the Palaszczuk Government wanted key stakeholders from the community and industry to get involved in the process, to improve working conditions across the state.

Subcontractors Alliance chairman Les Williams attended the opening two road shows at Nambour and Maroochydore and spoke about the discussion paper.

“I was very impressed with Mr de Brenni, I’m confident he has the political will to make this happen,” he said.

“I can’t remember the last time a minister showed so much commitment to a project.”

Subbies who cannot attend the road shows can get involved by visiting www.getinvolved.qld.gov.au where they can complete a survey or submit personal submissions via email to:  securityofpayment@hpw.qld.gov.au  or by mail to: Security of Payment Discussion Paper, GPO Box 2457, Brisbane, Qld, 4001.

Submissions must be lodged by 5pm on March 31.

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