(Photo: Twitter)
October 26, 2017
Building industry subcontractors will have more certainty about getting paid on time after the State Government passed a new law through parliament.
Minister for Housing and Public Works Mick de Brenni said the Building Industry Fairness (Security of Payment) Bill 2017 would bring security and confidence to the Queensland’s $45 billion construction industry.
“For far too long, subcontractors have had to shoulder most of the financial risk on building projects, but that changes today,” Mr de Brenni said.
“These reforms help ensure that subcontractors in the building and construction industry are paid in full and on time, every time.
“With these reforms, Queensland will have the strongest protections for subcontractors anywhere in Australia.”
Mr de Brenni said the comprehensive package of reforms were the result of extensive consultation, and would deliver a range of measures to secure payment for subcontractors.
“Project Bank Accounts (PBAs) are part of this package of reforms, and will prevent builders who want to use subcontractor payments as a line of credit from using funds from one project on another project,” Mr de Brenni said.
“We listened to industry, and our new laws mean that we will have the ability to expand the use of PBAs down to sub-subcontractor level if needed.
“We will use PBAs on all Government projects valued at between $1 million and $10 million from January 1, and will look to extend them to private sector projects over $1 million after January 1, 2019.”
Mr de Brenni said Queensland’s $45 billion building and construction industry employs almost 220,000 people and this is expected to grow to $52.3 billion and 230,000 people in 2018-2019 – a rise of $7.4 billion.
“Queensland deserves a strong, viable and productive building and construction industry,” he said.
“These measures are part of a comprehensive suite of reforms developed following extensive consultation over the past two years.
“They are considered, they are comprehensive and they will protect the lives and livelihoods of Queenslanders.”
