Milestones - June 2013
Projects, Construction & Infrastructure eNewsletter - 4 June 2013
In this edition...
Recent High Court decision changes application of the "penalty" doctrine
The industrial cost of construction
The last 12 months have seen a significant increase in the number and scale of industrial disputes across the country. Many of these disputes have occurred in the construction and infrastructure industries and have caused significant disruption both to construction companies and the broader community.
A number of cases which arose out of these disputes have resulted in changes to the law regarding the manner in which companies can lawfully respond to the conduct of their employees during industrial disputes. In particular, the extent to which a company can lawfully discipline a union member or delegate has been the subject of a number of cases.
Report recommends radical reform to contract payments
An independent Inquiry into the surging number of insolvencies in the construction industry in NSW has made 44 recommendations in its Final Report which would overhaul the current contract payment practices used across the sector.
A key recommendation of the Inquiry is that a statutory construction trust be used in building projects which have a value of over $1 million. Essentially, it recommends a construction trust be created when a principal makes payment to a head contractor.
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