Security of Payments good for contractors and the economy

The ACT Government has succeeded in establishing a new statutory process for operators in the building and construction industry to quickly resolve payment disputes through an adjudication process, Minister for Industrial Relations, Katy Gallagher MLA said.

The Minister said the Building and Construction Industry (Security of Payments) Bill 2009 passed by the Legislative Assembly yesterday provided an alternative to costly and protracted court proceedings that may arise from a dispute over payments for goods or services carried out.

“The legislation sets up a scheme to ensure payments to contractors are timely and any disputes over contracts are rapidly resolved,” Ms Gallagher said.

“This is particularly important for small and medium businesses as drawn-out disputes over the failure to pay monies owed impacts on their cash flow and their capacity to operate. This in turn can create uncertainty for their employees,” she said.

“The legislation will provide contractors in the building and construction industry with the means to more easily claim and recover outstanding payments for services provided.

“The bill sets out the process for the recovery of payment and the steps a claimant can take if they wish to proceed to adjudication,” Ms Gallagher said.

The Minister said the building and construction industry performed a vital role in the economy in the ACT, employing over 15,000 people in 2007-08, and the vast majority of ACT building and construction industry businesses employed five or less tradespeople.

20 November 2009