The Building and Construction Industry (Security of Payment) Act 2021 (Act) provides important payment protections for all participants in the Western Australian building and construction industry (some exclusions apply). It applies to construction contracts entered into on or after 1 August 2022.

The Act provides effective rights to get paid and recover debts owed, modifies and prohibits certain provision in construction contracts, and provides a number of protections for contractor performance security such as retention money and bank guarantees.

Please refer to the online seminar (below) or refer to the animations and factsheets.

Legislation 

• Building and Construction Industry (Security of Payment) Act 2021
• Building and Construction Industry (Security of Payment) Regulations 2022

Action Plan for Reform

An Action Plan for reform to introduce better payment protections for all participants in the Western Australian building and construction industry was released by the Minister for Commerce in September 2021. View the action plan at the link below.

Security of payment – Action Plan

Proclamation instrument

In accordance with the Action Plan, a Proclamation Instrument setting out when the various sections of the Act commence operation was published in the Government Gazette on 17 June 2022.

Proclamation instrument