With recent news of yet another construction firm going into liquidation owing millions to contractors and sub-contractors, concerns continue to be raised about the stability of payments for electrical contractors and their employees when construction firms invariably collapse.

“It is usually the case that electrical contractors are involved in the latter stages of the building and construction cycle and are often the last in the credit line for payment. This becomes particularly difficult in the event of the construction firm falling into receivership as electrical contractors are treated differently across each state’s Fair Trading Department,” said the CEO of the National Electrical and Communications Association Mr Suresh Manickam.

“Electrical contractors enter into building works in good faith through the installation of substantial, highly complex and expensive electrical equipment. The inequity of market failure for electrical contractors means that, given they are often one of the last trades on site, they are last in line to receive payments despite the substantial financial value of their work toward the completion of the construction project.”

NECA’s Policy Statement 2015 highlights these concerns and calls for the harmonisation of the creditor line process across Australia so that electrical contractors are not disadvantaged by the collapse of a construction company.

“Once again, we call on Governments across Australia to ensure that electrical contractors are not left in the lurch and that credit line payment processes are fair and equitable right across Australia,” Mr Manickam said.