The Master Plumbers and Gasfitters Association of WA applauds action our industry regulator is taking to ensure builders and head contractors comply with WA's deemed retention trust scheme.
Non-compliance with the scheme, which has existed since 2023 under the Building and Construction Industry (Security of Payment) Act 2021, is a major concern for our members.
A media statement released by Building and Energy on Wednesday 20 October said compliance inspections resulted in two commercial building companies paying more than $3 million in subcontractors’ retention money into trust accounts.
Prior to the inspections, the companies had taken the money from subcontractors but not transferred it into trust accounts.
The media statement includes a reminder from the Building Commissioner about following laws designed to protect subcontractors’ funds in the event of an insolvency, including providing subcontractors with written notice that a trust account has been set up for retention funds.
Builders and head contractors that do not comply are liable for substantial financial penalties.
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