Industry associations representing the Victoria’s subcontractors have called for stronger protection in a joint submission to the Victorian government.

The subcontractors’ associations, who have joined with unions, are jointly requesting the urgent enactment of stronger security of payment laws, a review of unfair contract terms and enhancements to the government’s procurement practices to support fair contracting throughout the construction supply contractual chain.

“Almost every week we’re hearing stories of subcontractors chasing thousands of dollars of debt while the construction industry sits back and watches as more and more businesses go to the wall,” National Electrical and Communications Association (NECA) executive director Pawel Podolski says.

“Almost 360,000 Victorians are employed in the construction sector, with up 90% being subcontractors. The current inadequate laws, unfair contract terms and inefficient procurement practices are leaving these workers exposed, especially when a builder goes bust.

“Subbies are too often being left out of pocket for work they have completed once the administrators move in. The situation is affecting countless families and is a significant contributor in the construction industry posting the country’s highest rates of suicide and substance abuse.”

In a March 2023 survey conducted by the National Subcontractors Forum, 54% of respondents reported being owed amounts of greater than $10,000, whilst 74% of respondents said that non-payment was impacting their personal lives.

Subcontractor associations and unions are calling on the Victorian Government to urgently implement reforms in line with the Federal Government’s pre-election promise to enact stronger security of payment laws and adopt the recommendations of John Murray’s Building Trust and Harmony Review.

“This needs to be addressed and it needs to be addressed now. Whilst the Federal Government await the formation of a National Construction Industry Forum to debate an issue they already promised to implement, the Victorian Government can lead by example and introduce legislative changes right now and protect the hardworking subcontractors providing much needed infrastructure and housing for our state,” Pawel says.

Industry associations representing the states subcontractors that have pleaded for urgent reform include NECA, Master Plumbers and Mechanical Services Association of Australia and Refrigeration and Airconditioning Contractors Association.

Along with these, Airconditioning and Mechanical Contractors Association, Institute of Electrical Inspectors, Electrical Trades Union, National Fire Industry Association Australia National Electrical Switchboard Manufacturers Association and Australian Cabinet and Furniture Association Civil Contractors Federation are other subcontracting associations have joined forces with unions.