There’s no doubt that current market conditions have placed significant financial stress on builders; the Australian Constructors Association is reporting that building firms are entering administration at twice the rate of other industries with over 50% of large contractors currently fitting the technical definition for insolvency. Whilst we certainly empathise with builders given what has […]
Several Governments have decided to step in with specific legislation related to trust accounts intended to protect subcontractor payments. The QLD, NSW & WA Governments have all introduced rules governing how builders are to manage progress payments and/or retention money held against subcontractors. We’ve looked at the various legislations introduced to date, both in principle & in practice, so we thought we’d provide an assessment of each from intent to adoption & outcomes. We also provide some insight into our ongoing interactions with the various industry bodies that have introduced these policies/processes as well as those set to influence future frameworks.
When a builder submits a progress claim, they are not only asking to be reimbursed for costs incurred by their business, but also on behalf of the consultants, subcontractors and suppliers that have performed work on and/or provided materials for the project – only a portion of the progress payment is actually the builders money. […]
Melbourne, Australia, 18 September 2023 – IPEX – the industry-leading payments platform that protects project funds and offers enhanced payment security to the construction industry – has set its sights on becoming the ‘industry standard’ in its mission to safeguard against the threat and damage of insolvency and non-payment in Australia’s $360 billion construction industry. […]
