Springwood MP and the government’s minister for procurement Mick de Brenni says more than $10 million now sits in project trust accounts, ensuring tradies are paid by developers.
Now, the government is looking at software that makes the system easier to manage, particularly for smaller builders feeling the strain of an at-capacity industry.
“In recognition of our commitment to full scheme operation and balancing the capacity of the industry at a challenging time, we are giving both tradies and builders certainty about the final phases of implementation,” Mr de Brenni said.
“We have always said this was not going to be a simple reform process, and that we won’t let prefect stand in the way of good–so whilst not ideal, in the current circumstances, this is the right thing to do.
“Subcontractors are especially vulnerable to payment delay or non-payment as they are at the end of the contractual supply chain.”
Mr de Brenni said larger contractors had been able to manage challenged in-house.
But smaller builders were struggling with off-the-shelf solutions.
A Project Trust Account (PTA) is an account through which project payments are received and paid. A PTA is needed for all eligible construction contracts in Queensland. A separate PTA is required for each eligible contract.
Typically, a PTA is:
- paid into by the project owner or developer
- managed by the head contractor
- the account from which all subcontractors are paid
- the account from which the head contractor pays themselves.
All other protections, including payment terms, reporting, and financial obligations (including existing Project Trust Account thresholds), will continue to require compliance and will be enforced by the building regulator.
