News & Views

NECA on behalf of its members brought together representatives from union and peak building and construction industry subcontractor associations, to call on the Commonwealth Government to honour its pre-election promise and immediately implement payment protection policy as recommended in the Review of Security of Payment Laws: Building Trust and Harmony report by Mr John Murray AM.  

Meeting with Mr Murray at the Security of Payment Industry Forum hosted by Mr Oliver Judd, NECA CEO, industry representatives signed a Statement of Agreement outlining key actions to the Commonwealth Government to address the inconsistent and inadequate regulations and take action to protect the rights of all industry participants. These actions include:  

1. Urgently enact federal Security of Payment laws to implement the Murray Report   

• Remove the confusion and inconsistency between current laws by enacting a single framework for security of payment that will apply consistency across Australia.  
• Within three months, prepare the draft legislation for consultation with industry and other stakeholders.  
• Ensure that the draft legislation reflects the recommendations in the Murray Report including provision for cascading statutory trusts in favour of sub-contractors and sub-sub-contractors. 

2. Strengthen prohibitions for unfair contract terms  

• The use of unfair contract terms in construction subcontracts is strongly linked to security of payment issues and greater protection against unfair contracting are urgently required.  
• In addition to immediately implementing the recommendations stated in the Murray Report in relation to unfair contract provisions, the federal government must urgently progress the enhancement of business to business unfair contract laws under the Australian Consumer Laws (ACL). However, these enhancements must go further for the construction industry.  
• The federal government must also prohibit the use of specified types of unfair contract terms which have become common in the construction industry to make it clear that the use of such terms will not be tolerated.   

3. Ensure the government procurement practices support fair contracting down the construction supply contractual chain 

• Procurement policy and procedure for government construction projects must be reviewed and enhanced to proactively require head contractors to strictly comply with security of payment and unfair contract laws.  \
• Government must take steps to ensure that the content of head contracts is not contributing to unfair payment practices down the sub-contracting supply chain.  

Support 

NECAs legal team recently launched its 5-part webinar series, with the first webinar deep diving into how you can recover monies owed using a payment claim under the Security of Payment legislation.

NECA members are reminded that if you are experiencing difficulties in chasing debt, that as part of your NECA membership, you receive basic phone and email enquiries with our in-house legal team. 

Participating industry representatives at the Security of Payment Industry forum: National 

• Electrical and Communications Association  
• Master Plumbers Australia New Zealand
• National Fire Industry Association Australia  
• Electrical Trades Union  
• Refrigeration and Airconditioning Contractors Association  
• Specialist Contractors Association  
• Airconditioning and Mechanical Contractors Association  
• Australian Small Business and Family Enterprise Ombudsman  

 
Other attendees:  

• Author of the Review of Security of Payment Laws, Building Trust and Harmony Report – Mr John Murray AM 
• Co-author the Building Confidence Report and Security of Payments Industry Forum facilitator – Ms Bronwyn Weir