News & Views

16th June 2016

ACT building reforms – heading in the right direction

The National Electrical and Communications Association (NECA) has supported the first tranche of reforms arising from the ACT Government’s Building Regulatory System review.

“Recently announced reforms to building regulations are heading in the right direction,” said NECAs CEO, Suresh Manickam.

“It’s encouraging that a number of issues outlined in NECA’s submission to the ACT Government’s review have been addressed in the first reform tranche, including:

  • Measures aimed at curbing the practice of phoenixing; and
  • A commitment to review of the effectiveness of ACT procurement arrangements for security of retentions held by contractors and progress payments on government projects.”

“However, NECA believes that more that needs to be done to protect electrical contractors in the building and construction industry in the ACT.”

“By international standards, electrical contractors in Australia are responsible for a very high proportion of all building and construction work, providing the highest value inputs of all sub-contractors by way of fixtures, fittings and labour.”

“The majority of NECA members and electrical contractors are Australian SMEs – small family owned and run businesses who are more susceptible to some of the issues raised in the review, for example timeliness of payment.”

“For these reasons, it is essential that their interests are adequately taken into account,” said Mr Manickam.

Mr Manickam said that NECA also looked forward to contributing to the ACT Government’s forthcoming review of Security of Payment legislation as announced within the reform package.

“We will continue to strongly advocate for a maximum time period of 30 days for a progress claim payment.”

“There is an urgent need for the introduction of a low cost, Retention Money Trust legislation in the ACT to protect electrical contractors who are owed payments. We urge the ACT Government to proceed with a trial of a new project / retention account model by the end of 2017.”

“Additionally, NECA suggests that a new alternative dispute resolution model for residential building in the ACT, be quick, cost-effective and expedites payments to electrical contractors, particularly during disputes between builders / head contractors and consumers.”

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Media enquiries and interviews

Barry Jackson – National Marketing and Communications

E barry.jackson@neca.asn.au

D 02 9962 6904

M 0457 767 328

 

Notes for editors

 

  1. NECA is the peak industry body representing the interests of electrical and communications contractors Australia-wide.
  2. NECA is run by electrical contractors, for electrical contractors.
  3. We have 5,000 contracting companies as members – and they in turn employ over 50,000 people Australia-wide.
  4. NECA employs almost 350 people across its seven chapters (Queensland, New South Wales, ACT, Victoria, Tasmania, South Australia and Western Australia).
  5. The chapters provide NECA members with a range of services including: Industrial Relations, Health & Safety, Legal, Technical, Training, business-support services, product discounts and advocacy representation in Canberra with Government, Industry bodies and Training bodies.
  6. NECA wholly-owns its Legal firm, Group Training and the NECA Colleges (in WA) and EcoSmart Electricians – and has joint ventures with a superannuation company (NSW) and one of the national cabling registrars (ACRS).
  7. NECA also employ around 2,000 apprentice electricians and provides training to a further 2,000.
  8. For further information go to www.neca.asn.au.

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