Western Australia’s peak civil construction industry body welcomes the Federal Government’s renewed commitment to fair and reasonable security of payments protections for subcontractors.

Civil Contractors Federation Western Australia CEO Andy Graham said today's Federal response to the 2018 Murray Review reinforces that security of payments protections are necessary in the construction sector. “As the Review stated and the response acknowledges, there is an inherent power imbalance in our industry between extremely large head contractors and small subcontractors,” Mr Graham said. “That’s why security of payment legislation exists in all states and territories.

"Here in WA, our State Government responded proactively to the Murray Review, implementing new security of payments legislation that aims to improve protections and provide more certainty for head contractors, subcontractors and suppliers.

“CCF has a unique perspective on this issue as our membership includes some of the largest head contractors and smallest subcontractors. More than most groups, we know how important it is to get the balance right and ensure that subcontractors are fairly paid, without tying all businesses up in complex and sometimes ineffective red tape.

“We share the Federal Government’s concern that project bank accounts and statutory trusts impose a huge administrative burden on all parties, while not really addressing key issues such as disagreements over contractual entitlement.

“CCF looks forward to further consultation with the Federal Government on this important issue, led by CCF National CEO Nicholas Proud, our representative on the National Construction Industry Forum.”