Since 1 August 2022, new security of payment provisions for Western Australia (WA) are in operation under the Building and Construction Industry (Security of Payment) Act 2021 (WA) (Act).

The new security of payment provisions apply to construction contracts for construction work, or the supply of related goods or services, in WA, with a contract value of $20,000 or more. The Act does not affect construction contracts entered into before this date. For those contracts, the Construction Contracts (Former Provisions) Act 2004 (WA) (CCA) will continue to apply.

The Act provides effective rights to get paid and recover debts owed, modifies and prohibits certain provision in construction contracts, and provides a number of protections for contractor performance security such as retention money and bank guarantees.

The Act introduces industry wide laws to enhance payment protections for contractors (including subcontractors and suppliers), and introduced reform in four main areas:

1. New security of payment laws to create more structure and transparency to payment rights under contracts and a more effective means for contractors to recover payments owed;
   
2. A retention trust scheme to better protect subcontractor retention money in the event of insolvency or dispute on a project;
   
3. Excluded contractors – expanding the powers of the Building Services Board to take action against registered builders and other providers who fail to pay debts to subcontractors and to remove those with a history of financial failure; and
   
4. Fairer contracting practices to rebalance the allocation of contractual risk in the industry.
   

The Construction Contracts Act 2004 (WA) and its associated regulations provide a comprehensive framework for the adjudication of payment disputes in the construction industry, helping to ensure fair and timely resolution of disputes and maintain the health of the construction sector in Western Australia.

Some key provisions of the Construction Contracts Act 2004 (WA) include:

1. Adjudication Applications: Any party to a construction contract may apply for adjudication of a payment dispute arising under the contract.
   
2. Adjudication Process: The Act sets out the procedures and timelines for the adjudication process, including the appointment of adjudicators, submission of documents, and determination of disputes.
   
3. Adjudicator's Decision: The adjudicator must make a determination on the payment dispute within a specified timeframe and issue a written decision, which is binding on the parties unless challenged in court.
   
4. Enforcement of Adjudicator's Decision: Adjudicator's decisions can be enforced as if they were court judgments, providing a mechanism for parties to recover amounts determined to be payable.
   
5. Protections for Parties: The Act includes provisions to prevent parties from contracting out of the adjudication process and to safeguard the rights of contractors and subcontractors to receive progress payments for work done.
   

Expertise in Adjudication

At AdjudicationWA, we specialise in the field of adjudication and possess deep knowledge and experience in navigating the complexities of dispute resolution in Western Australia. Whether you're a contractor, subcontractor, property owner, or industry professional, we provide you with the guidance and support you need to achieve favorable outcomes.

Tailored Solutions for Your Needs

We understand that every dispute is unique, which is why we take a personalized approach to each case we handle. Whether you're seeking to resolve a payment dispute, clarify contractual obligations, or address construction-related issues, we have the expertise to guide you every step of the way.

Commitment to Excellence

At AdjudicationWA, we are committed to upholding the highest standards of professionalism, integrity, and client satisfaction. We take pride in delivering exceptional service and ensuring that our clients receive the attention, support, and advocacy they deserve.

Comprehensive Support Throughout the Process

Navigating the adjudication process can be daunting, but you don't have to do it alone. When you choose to work with AdjudicationWA, you gain a trusted partner who will be by your side every step of the way to provide you with the guidance, resources, and support you need to effectively resolve your dispute and move forward with confidence.

Get in Touch

Have questions or need assistance with your adjudication process?

Don't hesitate to reach out to the AdjudicationWA team. We're here to help you navigate the complexities of adjudication in Western Australia and achieve the best possible outcomes for your dispute.

Thank you for choosing AdjudicationWA as your trusted partner in dispute resolution.