Parliamentary Secretary for Regional Roads, Maritime and Freight Kevin Anderson and Parliamentary Secretary for Northern NSW Ben Franklin inspect the new bridge over the Richmond River on Pacific Highway.
Parliamentary Secretary for Regional Roads, Maritime and Freight Kevin Anderson and Parliamentary Secretary for Northern NSW Ben Franklin inspect the new bridge over the Richmond River on Pacific Highway. Marc Stapelberg

RMS to change contract regulations

THE SAGA of the 23 local sub-contractors chasing $7.3million from the government has led to changes in the NSW Roads and Maritime contractual regulations.

On Monday NSW Deputy Premier John Barilaro announced an ex-gratia deal for the sub-contractors dudded when Pacific Highway head contractor Ostwald Bros went into liquidation

Yesterday the RMS revealed a raft of measures to overhaul the management of major construction projects.

A spokesman said the agency has taken steps to ensure greater transparency of contractor compliance with payment obligations down the contracting and supply chain.

"The new contractual arrangements provide RMS with the ability to direct contractors to provide proof of payments due and payable to their subcontractors and suppliers,” he said.

"This change means that RMS can intervene where it has concerns subcontractors or suppliers are not being paid.

"It may, in certain circumstances, allow RMS to pay subcontractors and suppliers directly and offset those amounts from future payments owing to the head contractor.”

He said the information revealed by the Wave 5 Contractors has led to the RMS increasing its due diligence processes in relation to its projects to include six-monthly financial assessments of its major contractors throughout the project lifecycle.

"RMS has taken steps to liaise directly with the more than 230 subcontractors currently engaged across 30-plus projects statewide to confirm options available in the event of late or non-payment,” he said.

"Roads and Maritime is committed to working with industry to foster strong relationships at all levels of the contracting/supply chain. Key to this is ensuring payment obligations are met throughout the contracting and supply chain.”



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