Information for subcontractors on Department of Finance projects

What can be done to reduce the risk of subcontractor non-payment.

If you are a subcontractor who has not been paid on time or has not been paid the full amount, you have options. This applies on any construction project – government or private enterprise.

Options for subcontractors

Subcontractor responsibilities

As a subcontractor on construction projects, you should fully understand your risks, rights and obligations. Before subcontracting, you must understand how contracts, credit management, debt recovery and dispute resolution works.

You should obtain independent legal advice about your activities.

If a head contractor goes into receivership, administration or liquidation, you may not receive payment.

Assistance for subcontractors on Department of Finance projects

We want to help subcontractors get paid. If you are a subcontractor on a project managed by us and you have not been paid you should first speak to the head contractor.

If that doesn’t help, you can contact our project manager, the project consultant or talk to our Feedback Officer by:

We will investigate the claim, and if you choose to register a formal complaint, we will report back. You must give us any supporting documents such as invoices, correspondence and claims.

If the non-payment is part a contractual dispute between the you and the head contractor, we can’t legally intervene because we are not part of the contract between you and the head contractor.

In these cases, you should get independent legal advice or contact the Building Commission of WA or the Small Business Development Corporation who may be able to help resolve disputes.

Subcontractors and the Construction Contracts Act

Taking legal action to recover money can be time-consuming and costly. Contracts in the construction industry are covered by the Construction Contracts Act 2004 (the Act).

The Act has a rapid adjudication process to resolve disputes about payments for building and construction contracts. Under the Act, an adjudicator can be appointed and there are time limits for adjudication. For more information on the Act please call the Building Commission on 1300 489 099.

Adjudication under the Act is for contracts and not salary or wage disputes. For help with salary or wage disputes, please contact the Fair Work Ombudsman on 13 13 94.

Other helpful information

Contact

Department of Finance works complaints and feedback
Telephone:
61 8 6551 1888
Page reviewed 24 September 2019