In December 2015, the Department of Housing and Public Works Queensland released a discussion paper seeking feedback on the issue of security of payment in the building and construction industry. The paper seeks feedback from the widest possible cross section of the building and construction industry on the following identified issues:
Coincidentally, in December 2015, the Senate Economics References Committee released its report on insolvency in the Australian construction industry titled "I just want to be paid".
This report makes 44 recommendations aimed at dealing with the challenges of insolvency in the construction industry.
As the report points out, businesses operating in the Australian building and construction industry face an unacceptable higher risk than any other standalone industry of either entering insolvency themselves or becoming the victim of insolvency somewhere in their contractual relationship. The report points out that over the past decade the building and construction industry has accounted for between 8% and 10% of annual GDP but over the same period, the construction industry has accounted for between one fifth and one quarter of all insolvencies in Australia.
It is impossible to forecast what the final outcome of the Senate enquiry or the Queensland process will be. Unfortunately, this is not the first time that governments have sought to address the issue. The fact that the current inquiries are necessary perhaps indicates the limited success of such previous inquiries. What is probable is that unless radical and alternative options are considered and implemented, the problem will continue to exist.
However, those involved in the building and construction industry should be encouraged by the actions taken by the Senate and the Queensland Government. There is clear recognition that there is a problem.
Charter Hall, together with Western Sydney University (WSU) and University of NSW (UNSW), has announced the development of an $280 million innovation hub at 6 Hassall Street in Parramatta’s CBD.
New South Wales’ $2.4 billion Parramatta Light Rail Stage 1 project has commenced construction and it is set to transform the Greater Parramatta region.
A major milestone has been marked on the $2.4 billion Parramatta Light Rail project that will link Westmead to Carlingford through Parramatta CBD and Camellia in New South Wales, with two major contracts awarded for works on Stage 1.
Formerly known as the PlantMiner blog, Felix Project News is Australia's top 10 Construction blog.
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