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 todayWe 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.