AFTER persistent advocacy by the Subcontractors Alliance, this newspaper and many others, it is good to see that Housing Minister Mick De Brenni is taking action.
After state-wide consultation with subbies and a wide-ranging review of the construction sector, the Labor Government now plans changes to Building and Construction Industry Payments Act to ensure subcontractors get paid on time, in full and every time for projects by quarantining money owed to subcontractors when principal contractors become insolvent.
The government will roll out the PBA model to both government and private sector projects over $1million from January 2019, subject to successful outcomes from implementation on government projects between $1million and $10million.
While a more secure payment regime can't begin soon enough, any worthwhile reform must be carefully drawn up and have fail-safe provisions to protect the vulnerable and send a potent message to those who abuse their trust to feather their own nests, the plain dishonest or incompetent who should not be in business.
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