Security of Payment Reform - register for a free seminar
The new Building and Construction Industry (Security of Payment) Act 2021 (WA) introduces better payment protections for all participants in the sector. The new Act came into effect on 1 August and applies to construction contracts entered into from this date forwards. The former Construction Contracts Act 2004 will continue to apply to contracts already in place prior to 1 August 2022.
The new reform package will take effect in 3 stages:
- Stage 1 from 1 August 2022 - the new security of payment laws will create more structure and transparency to payment rights under contracts, together with a more effective means for contractors to recover payments owed through a process of rapid adjudication. The new laws are more consistent with those in the rest of Australia.
- Stage 2 from 1 February 2023 - construction contracts over $1,000,000 (including GST) entered into after 1 February 2023 that require the holding of retention money, to place retention money in a retention trust account.
- Stage 3 from 1 February 2024 - construction contracts over $20,000 (including GST) that require the holding of retention trust monies will be required to hold the funds in a retention trust account.
Register now for a free seminar
Building and Energy are holding free seminars on the changes to this legislation throughout WA during September, October and November 2022.
Seminar registrations can be made here.