On 19 May 2023, Level Playing Field prepared a parliamentary submission to: Inquiry into employers and contractors who refuse to pay their subcontractors for completed works – Report Tabled today
We are excited to announce that the Legislative Assembly Environment and Planning Committee has provided some recommendations including to:
- Enable subcontractors to claim all the value awarded by a construction contract
- Limit the use of unfair clauses in construction contracts
- Extend the time for which a subcontractor can claim payment for their work
- Make the adjudication process fairer for both subcontractors and head contractors.
The Report makes numerous references to Level Playing Field’s submissions.
Retention Money Recommendations:
On page 97 of the report, they referenced Level Playing Field’s submissions regarding retention money and our submission that:
“withholding retention money without a right to do so has become a frequent occurrence in the Victorian building and construction industry.
It asserted that this is ‘particularly problematic given…retention often represents a subcontractor’s entire profit on a construction project.”
Case studies from our clients were referenced to support the recommendation that the Victorian Government amend the Victorian Security of Payments legislation by:
- Retention trust accounts
- provide an entitlement to claim retention money under the Act, either as part of a broader payment claim or as a standalone claim
- empower an adjudicator to decide whether retention money is to be returned, the proportion which is owed, and the date on which it is to be returned.
Download LAEPC Report
