The Australian property construction sector requires greater payment security and changes to legislation to achieve this, it has been claimed.
Chief executive officer of Master Builders Australia (MBA) Wilhelm Harnisch said outdated and imbalanced legislation in this area means contractors and their principals face uncertainty regarding the costs involved in delivering new projects.
He commented: "Cashflow plays a major role in underpinning the building and construction industry's viability ... [and] unnecessary and costly time spent in adjudication is inefficient."
As a result, MBA has stated a desire to see a harmonised, open and balanced system for payment security put in place in the coming months.
Last month, Mr Harnisch offered his support for the announcement of a new study from the Council of Australian Governments to examine the costs associated with Australian property construction.
He noted it is a positive move to see that labour costs will be incorporated in these statistics.
Posted by Steve Douglas
