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Thursday, 3 September 2020
Much Needed Reforms to NSW SOPA
By Allison Dando @ 9:02 AM :: 479 Views :: Category: Media Releases

The Civil Contractors Federation NSW, New South Wales’ peak representative body and the voice for employers in the civil construction and maintenance industry, has thanked the NSW Government for listening to the industry and sensitively acting on important reforms to NSW construction industry Security of Payment law.

The NSW Government’s Building and Construction Industry Security of Payment Regulation 2020 flows on from the very positive changes made in 2019 by the NSW Government to the governing Act. The Act’s changes were keenly sought by Civil Contractors Federation NSW.

David Castledine, CEO of the Civil Contractors Federation NSW said “Without great care, reforms impacting how businesses engage with each other can have had significant unintended consequences. That risk is greatly reduced when Governments listen. 

“We called for the NSW Government to introduce much tougher penalties for rogues – those that willfully or repeatedly break the law by delaying paying their head contractors and sub-contractors. The Government has listened and acted.

“We called for less red tape – the removal of ineffectual, onerous, and costly reporting obligations that are ignored by rogues and needlessly drive costs up for legitimate businesses. The Government has listened and acted.

“We wanted a practical mechanism to ensure sub-contractors could review trust records - one that would allow for the increased visibility sought but in doing so not suffocate law-abiding businesses with more red tape. The Government has listened and acted.

“We called to avoid making changes that, particularly at this very volatile time, would only have made escrow harder to obtain and more expensive to secure for small and medium sized businesses. The Government has listened and acted.

“And, we wanted these changes implemented faster than was first planned. The Government has listened and acted - bringing most forward by 12 months.

“The NSW Minister for Better Regulation, Kevin Anderson, has shown real leadership by making changes that are very much needed, but are also very sensitive where change could damage the industry at a time it can least afford it.

“These reforms to the Act and Regulation will speed up payments, reduce red tape for law abiding businesses, and are more severe on rogues who have no place in our industry”.  

Mr Castledine concluded “Particularly in times of great hardship we ask our governments to listen, and Minster Anderson and his team have done just that. On behalf of the NSW civil construction industry - thank you.”

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