Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


New construction contracts law to change behaviour


New construction contracts law will change behaviour

The establishment of a fast track adjudication process for resolving payment disputes in the construction industry will do a great deal to change behaviour within the sector.

This view was expressed today by the Chairman of the New Zealand Construction Industry Council, Mr John Pfahlert, when welcoming a Government announcement that it will pass the Construction Contracts Bill under urgency during this session of Parliament.

Mr Pfahlert said the additional protection afforded contractors and subcontractors under the legislation was eagerly awaited by a wide variety of trades and sub-trades within the building and construction industry.

"The bill establishes processes for payment of contractors that are a significant improvement on existing payment practices. Withholding of legitimate payments by principals, clients and developers to head contractors, and between head contractors and sub-trades, is stifling cash flow within the sector.

"In many cases it is the sub-trades and suppliers of goods and services to the industry who are bankrolling developments by extending their lines of credit to clients -- rather than the client financing the deal for themselves.

"The establishment of a fast track adjudication process for resolving payment disputes between parties to a contract is a welcome move that will do a great deal to change behaviour within the sector. Given the problem with leaky buildings, the broadening of the bill to include all disputes, rather than just payment disputes, is an excellent measure."

Mr Pfahlert said the Council planned a series of educational seminars for industry participants and had prepared considerable material, including standard forms for use by contractors to submit payments claims under the new law. It was looking to the Ministry of Economic Development for support with educational and information resources to assist contractors in understanding the new legislation.

"We believe, however, that further investigation is still required into the concept of requiring mandatory bonds from clients and developers to ensure the payment of contractors and subcontractors."

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Sector Opposes Bill: Local Government Bill Timeframe Extended

The Minister of Local Government Peseta Sam Lotu-Iiga has asked the Select Committee to extend the report back date for the Local Government Act 2002 Amendment Bill (No 2). More>>

ALSO:

Breed Laws Don’t Work: Vets On New National Dog Control Plan

It is pleasing therefore to see Louise Upston Associate Minister for Local Government calling for a comprehensive solution... However, relying on breed specific laws to manage dog aggression will not work. More>>

ALSO:

Not Waiting On Select Committee: Green Party Releases Medically-Assisted Dying Policy

“Adults with a terminal illness should have the right to choose a medically assisted death,” Green Party health spokesperson Kevin Hague said. “The Green Party does not support extending assisted dying to people who aren't terminally ill because we can’t be confident that this won't further marginalise the lives of people with disabilities." More>>

ALSO:

General Election Review: Changes To Electoral Act Introduced

More effective systems in polling places and earlier counting of advanced votes are on their way through proposed changes to our electoral laws, Justice Minister Amy Adams says. More>>

Gordon Campbell: On Our Posturing At The UN

In New York, Key basically took an old May 2 Washington Post article written by Barack Obama, recycled it back to the Americans, and still scored headlines here at home… We’ve had a double serving of this kind of comfort food. More>>

ALSO:

Treaty Settlements: Bills Delayed As NZ First Pulls Support

Ngāruahine, Te Atiawa and Taranaki are reeling today as they learnt that the third and final readings of each Iwi’s Historical Treaty Settlement Bills scheduled for this Friday, have been put in jeopardy by the actions of NZ First. More>>

ALSO:

Gordon Campbell: On The Damage De-Regulation Is Doing To Fisheries And Education, Plus Kate Tempest

Our faith in the benign workings of the market – and of the light-handed regulation that goes with it – has had a body count. Back in 1992, the free market friendly Health Safety and Employment Act gutted the labour inspectorate and turned forestry, mining and other workplace sites into death traps, long before the Pike River disaster. More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news