The recent wave of high-profile builder insolvencies is further proof that the construction industry’s commercial builder payment model is broken. Unfortunately, it’s also made many…
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…
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…