MPGA supports security of payment for plumbing contractors

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The Master Plumbers and Gasfitters Association of Western Australia (Union of Employers) (MPGA) has been participating in workshops at both State and National levels. Security of payments is a key issue among plumbers as they are generally subcontractors and reliant on payment from head contractors for cash flow to maintain their businesses.

Key issues discussed at the workshops are as follows:

  • Promote prompt payment to maintain a subcontractor’s cash flow.
  • Ensure the legislation is drafted and structured as simply as possible.
  • Provide an appropriate balance regarding timing in the adjudication process.
  • Secure payments from misuse and the risk of head contractor insolvency by implementing a cascading statutory trust, thereby securing the payments of all subcontractors.  
  • Achieve a nationally consistent and effective set of security payment laws with implementation of the best practice recommendation which requires that the relevant State and Territory Government Ministers work together.
  • Promote a thorough education program for all contractors.
  • Best practice retention processes for the construction industry.
  • Implementing an agreed process for addressing variations in construction contracts.

MPGA advocates for the following:

  • Australian, State and Territory governments should develop and enact national legislation to ensure security of payments for construction industry subcontractors.
  • Ensure a straightforward and timely system is put in place which will benefit construction industry subcontractors and their ongoing financial security.
  • Ensure a legislative system which does not compromise the commercial relationship between the subcontractor and head contractor.

  
The MPGA will be communicating to members the outcomes of these workshops.
 

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