International Construction Law Review
CHANGING TIDES ON THE WEST COAST: AMENDMENTS TO THE WESTERN AUSTRALIAN CONSTRUCTION CONTRACTS ACT
Beth Cubitt1
INTRODUCTION
After a prolonged period of consultation and build-up, the Western Australian Construction Contracts Act 2004 (WA) (“CCA”) has been amended.
The amendments to the security of payment regime follow a statutory review completed by Professor Philip Evans and a number of recent high-profile payment disputes in Western Australia. They also occur at a challenging and dynamic time for the Australian construction market, with security of payment legislation nationally coming under increasing scrutiny from governments and the courts, including Australia’s High Court.
The amendments to the CCA are overwhelmingly contractor-friendly. In this article we consider their practical effect, as well as the broader implications for the security of payment framework in Australia.
SECURITY OF PAYMENT IN AUSTRALIA
Australia is a federation of states and territories. Each has its own security of payment regime. Australia has two distinct security of payment models. Western Australia, through the CCA, and the northern territory have adopted what is commonly referred to as the “West Coast” model. All other the states and the Australian capital territory have adopted the “East Coast” model.
There are a number of key differences between the two regimes:
- 1. The East Coast model prescribes a statutory payment scheme that is not only detailed but also overrides any inconsistent contractual provisions. By contrast, the West Coast model maintains the parties’
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