Tuesday, December 13 2011
New laws deliver pay day to South Australian tradies
The South Australian government has introduced new legislation that will make it easier for local tradies to recover payments owing for completed work.
The Building and Construction Industry Security of Payment Act looks to address the disputes that arise between building contractors and smaller suppliers
Speaking to Adelaide Now, state consumer affairs commissioner Paul White said the new laws would introduce independent adjudicators for a simpler solution.
"In the past, sub-contractors or suppliers could be put off by the builder with the excuse the builder had still not been paid by the client," he said.
"This may be due to rogue builders or customers deliberately avoiding payment, or financial problems experienced by builders."
According to Mr White, sub-contractors and suppliers will be able to seek help from an adjudicator rather than going through the court system or hiring a debt collector.
Under the new law, contractors now have 15 days to respond to a payment claim.
Adjudication can begin if that payment isn't made and a request for certification that a debt is owing can also be processed.
Usually payment of an adjudicated amount must then be made within five business days of the adjudicator's determination being served on the respondent.