Security of payment reforms - implementation options

Submission cover sheet

  • Name of organisation or individual making this submission

    Anonymous

Questions on possible options

  1. Please provide your comments on the options paper for the Security of Payment reforms

    1. Is the proposed start date for these reforms feasible? >> Yes they should come in as fast as possible 2. Are there reasons why these reforms should start later? >> No securing payments for all parties is a must and should happen as fast as possible. 3. Is the proposed start date for these reforms feasible? >> Yes 4. Are there reasons why these reforms should start earlier or later? >> No, they should start as early as possible 5. Is the proposed start date for these reforms feasible? >> Yes 6. Are there reasons why these reforms should start earlier or later? >> No, they should start as early as possible 7. Do you support the reforms only applying to a construction contract entered into after commencement? >> Yes 8. Are there specific reforms which you would consider to be more appropriate to apply to contracts entered into prior to commencement? If yes, why? >> No, it would be hard to legally enforce as there is grounds to argue 9. Are there specific reforms that you would not support being applied to contracts entered into prior to commencement? If yes, why? >> No, it would be hard to legally enforce as there is grounds to argue 10. Do you support maintaining a threshold to limit the application of the retention money trust obligations or should it be removed? >> Removed it should apply to all projects 11. Do you support reducing the threshold for retention money trust obligations from $20 million to $10 million? >> Yes 12. Is there another amount you consider appropriate for the threshold? Why? >> Should be lower than 10M 13. Do you support extending the retention money trust obligations to the entire contracting chain and not just limiting the obligation to head contractors? >> Yes it should include the whole chain. Otherwise subcontractors will ignore it as they do now. 14. Do you support removing the annual reporting requirements in clause 16 of the Regulation? >> No, reporting will keep it fair and equitable. It is a small cost and if a company cannot afford it they shouldnt be in business anyway. 15. What is an appropriate transitional period to allow for industry to prepare for the proposed changes to the retention money trust obligation? >> No. We could change in a week any company could. Lets bring in the changes as fast as possible. 16. Do you support the inspection of retention money trust account records? >> Yes, transparency is key. 17. Do you support inspection being subject to an appropriate fee? >> Yes 18. Should the Regulations prescribe a maximum fee to be imposed? If yes, what do you think an appropriate maximum fee would be? >> Yes, $200. 19. Do you support the offences listed above being subject to a penalty infringement notice? >> Yes. This is a must, there MUST be fines to make this work. 20. Do you support the proposed penalty notice amounts for these offences? >> Yes. Or increase them. Double or triple. 21. Are there any other offences which you consider appropriate for a penalty infringement notice? If yes, what penalty notice amount would you consider appropriate? >> Yes, there must be fines for subcontractors not paying within the timeframe of 20 days. Fine above $2000 22. Do you support increasing the value of the penalty unit for the offences listed above? >> Yes 23. Do you support the proposed penalty notice amount for these offences? >> Yes 24. Do you support accessorial liability applying to all offences under the Regulation which are capable of being committed by a corporation? >> Yes 25. Do you support executive liability applying to the offences listed above? >> Yes 26. Are there any other offences in the Regulation which you consider executive liability should apply to? >> Yes, not paying within the 20 Business days. 27. Do you support the proposed penalty unit amounts listed above for these offences? >> Yes

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