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ARTICLE · 05 SEPTEMBER 2016

HHG Construction Law Series Part 11: Solving WA subcontractor payment and home indemnity issues

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These could be related issues, as home builder insolvencies may seriously impact on both home owners and subcontractors.

AustraliaReal Estate and Construction
Murray Thornhill
Murray Thornhill
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Two building and construction-related issues have received much media and political attention in WA recently: subcontractor payments and home indemnity insurance.

Historically, these issues have been treated as separate and dealt with separately.

For example, there are proposals to deal with subcontractors' difficulties in getting paid for their work, through proposed amendments to the Construction Contracts Act 2004 (in WA) and the use in some government works of Project Bank Accounts. There are separate reforms under consideration to deal with, for example, the 116% increase in the home indemnity insurance premiums that WA home builders have been charged over the past four years.

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