- The Head Contractor Relief Scheme assists builders working on government projects
- 131 claims have been approved and made to builders impacted by market conditions
- Initiative highlights the Cook Government's commitment to supporting the industry
The Cook Labor Government is delivering on its commitment to support a stable building and construction industry, with more than $13 million worth of relief payments paid to head contractors.
Head contractors are the builders that government agencies contract with, to deliver infrastructure projects on behalf of government. They are responsible for ensuring the relevant project they are engaged on are delivered and handed over to government as per the contract.
The Head Contractor Relief Scheme, announced by the Labor Government in May 2022, provides financial relief to head contractors that entered into fixed priced contracts on Department of Finance and Department of Communities projects prior to sudden and unforeseeable increases in market costs.
Builders that met the eligibility criteria were invited to participate in the Scheme in June 2022. Since then, a total of 131 claims have been assessed and approved by the Departments of Finance and Communities, with more than $13 million in relief payments made to head contractors.
In May 2022, the State Government also announced rise and fall provisions, for future Department of Finance and Department of Communities contracts.
While the Scheme provides partial financial relief to head contractors for fixed price contracts, the introduction of rise and fall provisions addresses ongoing price fluctuations.
Rise and fall adjustments are monthly progress payments to the head contractor based on fluctuations in the price of trades and materials.
Both the Head Contractor Relief Scheme and rise and fall provisions were welcomed by industry, including the Master Builders Association (MBA).
As stated by Finance Minister Sue Ellery:
"This Government understands the unforeseeable changes in market conditions has been challenging for the building and construction industry, which is why we responded quickly by introducing a range of measures to assist head contractors working on Government projects.
"The Cook Labor Government continues to work with the sector to stimulate building activity, skills development and jobs growth. I am pleased with the collaboration between the Department of Finance and the Master Builders Association to enhance and refine contracting practices.
"Ensuring the building and construction industry remains stable is a key priority for our Government and we have been proactively working closely with builders and the construction sector to deliver the best possible outcomesfor Western Australians in the current environment."
As stated by Housing Minister John Carey:
"The COVID-19 pandemic radically reshaped the building and construction industry in Australia and around the world. Delays to building projects originated from supply chain disruptions following the pandemic, but we are advised that these are showing signs of tapering.
"We are committed to working with and supporting the building and construction industry.
"In just over 15 months we have paid more than $13 million to head contractors, with the Departments of Finance and Communities undertaking comprehensive, evidence-based assessments to deliver relief to head contractors.
"All of these initiatives demonstrate this Government's strong commitment to working collaboratively with industry to ensure we have a strong and sustainable construction industry capable of delivering the Government's pipeline of housing and infrastructure projects."
