New laws to protect West Australian subcontractors

The Western Australia government has introduced measures to protect tradies across the state from missing out on monies owed to them by head contractors.

Announcing the initiative yesterday (October 17), state finance minister Simon O'Brien said the new regulations would provide vital support for subcontractors working on building projects run by Building Management and Works (BMW).

He explained: "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.

Under the initiatives, contractors will have to provide more details on statutory declarations stating subcontractors have been paid, and the BMW will have the option to hold back payment from contractors if there is a discrepancy regarding subcontractor payment issues.

The new scheme also includes an education campaign to ensure that subcontractors are aware of their rights, and regulation that states contractors must inform BMW of subcontractor details.

"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," Mr O'Brien commented.