Early Christmas present for subcontractors: How will the upcoming changes to the adjudication process in WA benefit you?
It is that time of year again when subcontractors, contractors and principals should be aware of the time frames for a payment dispute under the Construction Contracts Act 2004 (WA) (Act).
However, key changes to the Act introduced by the Construction Contracts Amendment Bill 2016 may bring some relief to all parties to a construction contract, especially at this time of the year.
Below are some of the key changes to the Act:
Most of the changes will commence this Thursday, 15 December 2016 with the exception of the provision relating to the reduction in the time for payment of payment claims (which will apply to contracts entered into after 3 April 2017).
Importantly, where a party’s right to make an application for adjudication lapsed prior to 15 December 2016, that right is extended (so long as the 90 business days have not lapsed).
The proposed changes are designed to improve the operation and efficiency of the adjudication process for resolving payment disputes under construction contracts.
It is clear that most of the changes seem to favour claimants but it will remain to be seen whether the changes live up to expectations.
We will provide an update of the practical implications of the proposed changes in the New Year.