The ABCC assisted subcontractors to recover over $5.1 million in delayed or unpaid progress claims during the 2021-2022 financial year. The agency saw an almost 40% increase in security of payment enquires, complaints and reports from subcontractors over the past year, particularly in relation to recovering delayed or unpaid progress payments under the Building Code. The money was recovered after the ABCC contacted contractors regarding complaints received against them.
The ABCC conducted audits of more than 70 code covered contractors relating to Building Code security of payment obligations. The audit findings identified non-compliance in approximately 60% of all activities relating to security of payment and rectified 98% of matters with the contractor.
Since July 2019, the ABCC has assisted subcontractors to recover over $13.4 million in progress claims. The ABCC is currently investigating 14 complaints where subcontractors are alleged to be owed more than $5.74 million in unpaid progress claims.
The ABCC Commissioner has the power to issue publication of non-compliance under section 108 of the Building and Construction Industry (Improving Productivity) Act 2016 where it is in the public interest to do so. The Commissioner published non-compliance with SoP obligations under the Building Code, in relation to three building contractors – ASI Electrics Pty Ltd, Hardy Bros Mining & Civil Construction Pty Ltd and RMA Construction Group Pty Ltd.
In each of these cases the respondents owed money for outstanding progress claims and did not adhere to the relevant state and territory legislation. In the cases of ASI Electrics Pty Ltd and RMA Construction Group Pty Ltd, the respondents did not pay the money they owed to the claimant until the ABCC’s intervention. Details of these matters can be found here.
Along with the almost 40% increase in security of payment enquires, complaints and reports, over the past year, the ABCC received a concerning 45% increase in disputed or delayed payments reported. The ABCC is committed to assisting all contractors in recovering outstanding money owed and stands ready to receive your enquiries and reports.
If you are experiencing disputed or delayed payments from a Code covered entity, you can call the ABCC on 1800 003 338 for free advice and assistance.
While the Code remains in place in its current form, the ABCC will prioritise the following issues:
- Security of payment for subcontractors
- Compliance with work health safety laws
- Compliance with the drug and alcohol testing requirements
- Australian Standard Building Products
- Labour Market Testing
- Assessment of enterprise agreements and workplace relations management plans
