ACIF’s joint meeting with APCC enables the building and construction industry to discuss key issues that affect the whole industry. The September meeting included a presentation from the WA Government on its planned changes to security of payment provisions.
The NSW and WA Governments are changing the ground rules on security of payment, following well publicised failures of building companies in those states.
Both are considering the introduction of project bank accounts, on a trial basis, to protect payments to subcontractors. The issue is not easy, and never has been. The use of trust accounts to protect payments has been proposed, and vigorously opposed, for more than two decades. The use of project bank accounts is an alternative to trusts, still removing some control of cash and cash flow from head contractors.
More on this as the trials take place.