18 Apr 2013
Response to the Collins Inquiry in Construction Industry Insolvency: bonds, new offences
The NSW Government has accepted some of the key recommendations of the Recommendations of the Independent Inquiry in Construction Industry Insolvency in NSW, including the introduction of bonds. We know that the Government will:
establish a cash retention trust scheme for subcontractors;
introduce prompt payment provisions – progress payments will have to be made within 30 days, which is shorter than what can currently occur in practice;
introduce a legal requirement for written statements by head contractors to ensure all subcontractors are paid, and allow authorised officers to investigate and prosecute offences.;
trial the use of Project Bank Accounts on Government construction contracts where Government will directly pay subcontractors and revamped and more frequent financial assessments of contractors; and
set up an Industry Advisory Taskforce to develop an education program targeting subcontractors to improve business and financial management skills in the industry.
The rest of the 44 recommendations made by the Collins Inquiry are still under consideration.
We will keep you up to date with further analysis as more information is released.
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