South Australia wants to make it easier for subcontractors to get paid by principal contractors.
South Australia’s small business commissioner has proposed new laws to ensure subcontractors receive prompt payment from principal contractors.
Proposed changes include:
- Penalising principal contractors who try to intimidate subcontractors out of chasing payment
- Establishing alternative dispute resolution services
- Educating the industry about the Building and Construction Security of Payment Act
- Requiring directors of principal contracting firms to sign statutory declarations confirming that subcontractors have been paid
- Implementing procedures to ensure subcontractors who work on government projects over $1 million are paid on a regular basis
The small business commissioner’s proposal follows a review of the Building and Construction Security of Payment Act.
Minister for Small Business Martin Hamilton-Smith said the issue of intimidation by principal contractors was one of the most concerning issues raised.
“Prompt payment for these