The National Electrical and Communications Association (NECA) has welcomed the Victorian Government’s response to the parliamentary inquiry into employers and contractors who refuse to pay their subcontractors for completed works.

The electrical and communications industry body has made particular mention of the streamlining of the Security of Payment Act and the simplification of the process for subcontractors to claim payments which is said to ensure statutory entitlements are clearer and more closely aligned with national standards.

“It is pleasing to see that many of the recommendations put forward by NECA with the support of the National Subcontractors’ Forum have been considered by the government and are in line with the recommendations of John Murray AM and his Building Trust and Harmony report”, NECA Victoria executive director Rob Selymesi says.

“These are important steps forward for Victorian subcontractors, and we also welcome the government’s announcement of a review into the implementation of cascading statutory trusts. This is a critical element of Security of Payment reform and one that underpins the Security of Payment framework that both NECA and John Murray have been advocating for, for so long.”

Full support has also been given to measures that nullify unfair time-bar clauses and unfair contractual provisions, helping to correct some of the power imbalances that exist for Victorian subcontractors.

Limiting payment terms to a maximum of 25 business days and the adoption of an adjudicator will help remove the litigious nature of negotiations, according to NECA, paving the way for more harmonious relationships between principal contractors and subcontractors.