Construction reforms or another Phoenix rising?
The Building and Construction Industry (Security of Payment) Bill 2020 is to be introduced into State Parliament today.
It aims to protect subcontractors by speeding up payment times and introducing a mandatory retention trust to reduce the chance of loss or misappropriation of money during insolvency.
Further provisions to remove registered building contractors who engage in the practice of ‘phoenixing’ (driving a construction into the ground only to re-emerge as a brand new business) is also set to be introduced.
Will these provisions really assist sub contractors though?
Commerce Minister John Quigley joins Mornings with Gareth Parker to explain the Bill and how it aims to improve security in the Building and Construction business.