Question 1

What is the Construction Contracts Act 2004 (WA)?

Accepted Answer

The Construction Contracts Act 2004 provides a statutory framework for rapid adjudication of payment disputes in the construction industry. It applies to most construction contracts in Western Australia and provides a mechanism for parties to obtain a binding determination of payment disputes within 28 days. The Act is designed to ensure cash flow in the construction industry and reduce the incidence of insolvency caused by payment disputes.

Question 2

How do I protect my position when a builder becomes insolvent?

Accepted Answer

If a builder becomes insolvent, your options depend on the type of contract, the stage of construction, and the security arrangements in place. Key steps include registering a claim with the liquidator, reviewing any insurance policies or bank guarantees, and considering whether the Building Services Board complaint process is appropriate. Early legal advice is critical to preserving your rights and maximising recovery.

Question 3

What should I look for in a construction contract?

Accepted Answer

Key areas to review include the scope of works and specifications, payment terms and mechanisms, variation procedures, delay and extension of time provisions, defects liability obligations, insurance and indemnity requirements, and dispute resolution procedures. We recommend having any construction contract reviewed by a specialist lawyer before execution to ensure your interests are properly protected.

Building & Construction

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Howard Healy

Michael Mistilis

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