Participants at all levels of WA’s building and construction industry are reminded that new legislation is now in effect to help subcontractors and suppliers receive timely payments for their work.

The Building and Construction Industry (Security of Payment) Act 2021 introduces better payment protections for all participants in the sector. It is one of the most significant legislative changes for the local industry since the Construction Contracts Act 2004 (CCA).

In line with the State Government’s three-year Action Plan for implementing the Act, the first stage of reforms took effect on 1 August 2022.  These apply to construction contracts entered into on or after that date. The CCA will continue to apply to construction contracts entered into before then.

Stage 1 focuses on the introduction of new security of payment laws that create more structure and transparency to payment rights under contracts, together with a more effective means for contractors to recover payments owed through a process of rapid adjudication. The new laws are more consistent with those in the rest of Australia.

Building and Energy is helping businesses adjust to the reforms through industry education activities and a suite of online resources (dmirs.wa.gov.au/securityofpayment) including:

• videos and fact sheets covering the full payment process under the new laws;
• template forms for making and responding to payment claims, as well as utilising the rapid adjudication process to recover overdue construction payments; and
• user guides for the adjudication process (both for claimants and respondents).

Regional information sessions will be held in September, October and November. Metropolitan events will follow, with details available soon. In the meantime, an online seminar, delivered in collaboration with law firm Jackson McDonald, explains the key provisions.

Further security of payment reforms will commence from February 2023 and February 2024. These stages will include a mandatory retention trust scheme, fairer contracting practices and expanded powers against unscrupulous registered builders.