May 8, 2012

Member for Nanango Deb Frecklington says the recently announced examination of reforms for the construction industry by the State Government should help to ensure sub-contractors in the South Burnett receive payment for their work.

She said non-payment was an issue throughout the economy because of ongoing financial difficulties.

The “cascading payments” system of the building industry often meant that those at the base of the industry were hardest hit.

“Our government will be working closely with the Building Services Authority on implementing a number of changes which they hope will expedite and improve sub-contractor payments in the future,” Mrs Frecklington said.

These changes include an overhaul of the unsatisfied judgment debts system, whereby contractors will have their licence cancelled if they fail to comply with a court-ordered payment.

“Contractors are currently able to incur three judgment debts before their licence is cancelled, which is unacceptable. We will legislate to have their licence cancelled after the first failure and if a second failure occurred in the future, that would result in a life ban,” she said.

The State Government is also looking at legislative changes to void items within a contract that were “unfair”.

“Unfair contractual clauses that inappropriately or unjustly favour one party will be outlawed. There will be consultation with industry groups on this but we want to see a fairer, more streamlined contractual system in the industry,” Mrs Frecklington said.

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