Industry bodies representing building and construction industry subcontractors have joined together to create a new working group called ReBuild Australia to protect payments.
The group was created by Australian fintech organisation ProjectPay and has been joined by associations including Australian Subcontractors Association (ASA), Master Painters & Decorators Australia (WA), Master Painters Australia NSW/ACT, Master Plumbers Association of South Australia, National Electrical & Communications Association (NECA) (SA/NT), the Association of Wall and Ceiling Industries (WA and NSW), building dispute adjudicators Adjudicate Today, and a national construction group.
Discussions are also underway with a number of builders, government bodies and councils interested in joining the group.
ReBuild Australia will take the recommendations made by six industry experts to help the construction industry recovery effort post-COVID-19.
The focus will be on accelerating and protecting payment of trade invoices, ensuring and maintaining subcontractors’ cash-flow and protecting over 1.2 million jobs. Subcontractors make up more than 82 per cent of the building and construction industry.
ProjectPay CEO Louise Stewart said the group anticipates that long-promised legislation designed to improve subcontractor payment protections is expected to be released for comment by the WA government.
“We are looking forward to working with them to ensure that industry is engaged in the state and national roll out of reforms,” Stewart said
ReBuild Australia is in discussions with the Australian Finance Industry Association (AFIA) to look at options to access the Australian Office of Financial Management (AOFM) Structured Finance Support Fund, designed to back struggling small businesses that don’t satisfy banks risk criteria. This will be provided through the platform for immediate payment of trade invoices, paid through CSTs across the entire supply chain.
“CSTs are supported by Small Business Ombudsman Kate Carnell, who released a report in support of industry wide implementation of CSTs as the only sensible way to protect payments for SME businesses in the industry,” Stewart said.
Article Source: Inside Construction
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