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ARTICLE · 30 AUGUST 2016

Key Changes To Security Of Payment Regime In Western Australia

Jones Day
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The Western Australian Government's long-awaited response to review of the Construction Contracts Act 2004 was recently released amid further scrutiny on government-managed construction projects and contractor insolvencies.

AustraliaGovernment, Public Sector
Jones Day
Jones Day
Stephen McComish
Stephen McComish
Paul Riethmuller
Paul Riethmuller
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The Western Australian Government's long-awaited response to review of the Construction Contracts Act 2004 (WA) ("CCA") was recently released amid further scrutiny on government-managed construction projects and contractor insolvencies. Professor Evans's report on the operation of the CCA made 28 recommendations for the improvement of the CCA and the adjudication process. A brief summary of the key recommendations and the potential reforms to the security of payment regime in Western Australia is below.

Government Projects

Project Bank Accounts: From 30 September 2016. The Government has indicated that it will mandate the use of project bank accounts ("PBAs") on public projects valued between $1.5 million and $100 million from 30 September 2016. The wider use of PBAs may introduce further regulatory headaches for government contractors and their financiers.

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