The period for submissions on wide-ranging reforms to the NSW construction industry recommended by the Independent Inquiry into Construction Industry Insolvency in NSW is closing soon.
As we noted when it was released, the report is lengthy and addresses a wide variety of potential causes of contractor insolvency. It makes 44 recommendations, many of which, if adopted, are likely to have significant implications for the cashflow of industry participants, especially for head contractors.
The recommendations include:
- introducing a requirement for construction trusts on all projects valued at $1m or more;
- introducing prompt payment requirements;
- creation of the NSW Building and Construction Commission to act as a new "one stop shop" for regulation of the NSW construction industry; and
- proposed reforms to the NSW Security of Payment regime, including expanding the ambit of adjudication under the legislation.
To help you understand the report and its recommendations, and to prepare your submissions, we have prepared a briefing paper which sets out what you need to know about the key proposed reforms.
The NSW Government has invited submissions on the report and its recommendations by 21 February 2013. If you'd like further information, or help in drafting your submission, please contact us.
Clayton Utz communications are intended to provide commentary and general information. They should not be relied upon as legal advice. Formal legal advice should be sought in particular transactions or on matters of interest arising from this bulletin. Persons listed may not be admitted in all states and territories.
