Image: Martin Brochhaus
The building and construction industry in Queensland is set for a major shake up with the introduction of new laws designed to protect the security of payments to subcontractors.
The historic reforms to be introduced by the Palaszczuk Government will also cover project bank accounts and are designed to assist the growth of Queensland’s construction industry.
The Premier said project bank accounts would provide security and confidence to the 69,000 small subcontracting businesses around the state.
“What’s been clear from listening to subcontractors is that some more unscrupulous operators in the industry are using non-payment as a business model,” she said.
“Too many families have been torn apart because of this issue, and too many tradies have lost their businesses and even their homes.”
“We took a commitment to the last election to review security of payment for subcontractors. The evidence is in and it shows that all Queenslanders will benefit from making sure people get paid in-full, on-time and every time,” the Premier said.
“The balance hasn’t been right. It’s time to get construction back on the level.”
Housing and Public Works Minister Mick de Brenni said the government was now preparing legislation to phase in project bank accounts across Queensland.
“Project bank accounts are the centrepiece of a suite of measures that will make sure subbies aren’t left out in the cold,” the Minister said.
“From January 1, 2019, every construction project over $1 million will be required to operate a project bank account.
“We will be supporting industry to transition by introducing project bank accounts on all Queensland Government construction projects between $1 million and $10 million from the start of 2018.
Mr de Brenni said that project banks accounts were part of a series of proposed reforms outlined in Palaszczuk Government’s proposed Queensland Building Plan.
“The Queensland building and construction industry is worth $44 billion to our economy and provides work for 220,000 Queenslanders.
“Our Queensland Building Plan will build a solid base for continued confidence across the industry, for builders, subcontractors and consumers,” he said.
The Queensland Building Plan will include the QBCC Home Warranty Scheme, non-conforming building products, licencing reforms and a potential single housing code for Queensland, amongst others.
“This government is absolutely committed to building confidence in our construction sector and major reforms like supporting subbies demonstrate this commitment,” Mr de Brenni said.
The government will be consulting with the Queensland’s building and construction industry stakeholders to finalise the details of the building legislation in coming months.
Consultation on the Queensland Building Plan will be open until April 2017. More information about the plan can be found at www.hpw.qld.gov.au
