The government has recently released its long awaited draft Security of Payment legislation. This is vital legislation for NECA members and for subcontractors in general.
Overall NECA WA is reasonably happy with the proposed outcomes. The government have enacted much of what we asked for in our submission back in 2018.
The main areas of reform are:
However one important issue which the government hasn’t addressed is the introduction of deemed trusts for progress payments. The government have said that they thought that was a step too far when introducing these proposed changes.
However, NECA and many associations representing sub-contractors in other trades, firmly believe that this is a vital tool in the protection of our members so we will continue to lobby for its introduction.
The explanatory statement of the new legislation can be found here.
Feedback on the draft is open until the end of June so if you have any comments, please email them to Aidan O’Grady by Friday 19 June - email@example.com