Master Electricians welcomes Security of Payment Bill

Legislation to guarantee security of payments to small and medium businesses in the building and construction industry has been welcomed by Master Electricians.

The Queensland Government will introduce the Building Industry Fairness (Security of Payment) Bill 2017 to parliament, which is designed to crack down on ‘phoenixing’ in the industry.

It will also provide project bank accounts to safeguard contractors from losing money.

MEA Chief Executive Malcolm Richards said that the legislation was a big step forward and was welcomed by MEA members throughout Queensland.

“MEA has been advocating to the Queensland Government for a long period of time to implement project bank accounts and we fully welcome the announcement by the Minister,” Richards said.

“We have seen multiple examples of building companies going bust and in the process leaving many mum-and-dad subcontracting businesses out in the cold.”

The security of payments reforms will put project bank accounts into place from 1 January 2018 on all government projects valued between $1 million and $10 million. The protections will then be expanded to all private sector projects worth in excess of $1 million from 1 January 2019.

“Since the end of last year, the Queensland building sector has had 30 insolvencies and around $100 million taken from the pockets of small subcontractors,” Richards said.

“Project bank accounts will ensure that big builders can no longer use mum-and-dad subcontracting businesses as a cash cow to finance their next major project.

“We ask that the parliament passes this vital piece of legislation without delay in order to ensure that subcontractors are paid in full, on time and every time.”

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