The Western Australian Government has announced a suite of initiatives aimed at protecting subcontractors working on building sites run by Building Management and Works (BMW).

 

“While the State Government does not have direct contractual relations with subcontractors, I believe it is important that it leads the way in protecting them from missing out on payments by head contractors, particularly in the case of contractor bankruptcy,” State finance Minister Simon O’Brien said.

 

“The Government has already put in place stronger pre-qualification requirements for builders wanting to work on Government projects.  However, I believe more should be done.”

 

“The issue is balancing the need to protect subcontractors with the competing needs to reduce red tape and provide value for money for taxpayers.  Achieving this balance will require consultation with industry.”

 

The initiatives announced by the Minister include:

  • more detail on statutory declarations provided by contractors verifying subcontractors have been paid. The detail will include whether there is a current dispute and the value of that dispute
  • the option to hold back monies from contractors if there is a dispute between contractors and subcontractors over payment or issues such as quality of work
  • an education campaign to make subcontractors aware of their rights
  • a requirement for contractors to inform BMW of the names and contact details of subcontractors working on a particular job.

 

“In addition, I have charged the Small Business commissioner, David Eaton, with the task of appointing an independent investigator to investigate the claims of subcontractors who have lost money on BMW Building the Education Revolution (BER) projects,” the Minister said.