CCA change for subbies?

Bond proposal to protect incomes of those further down the chain.

In light of the Mainzeal collapse, Graham Burke, president of the Specialist Trade Contractors Federation, has suggested the Construction Contracts Act (CCA) be amended to better protect sub-contractors.

“A bond would effectively allow a subcontractor to provide a guarantee to the contractor, rather than the main contractor holding on to any money themselves – Graham Burke

In an opinion piece published in the Dominion Post, Mr Burke proposes the CCA give subbies the option of providing a bond, instead of the contractor holding on to any money.

“A bond would effectively allow a subcontractor to provide a guarantee to the contractor, rather than the main contractor holding on to any money themselves,” says Mr Burke.

Currently, bonds can be used only if the main contractor agrees.

“Giving the sub-contractor the ability to choose whether or not to provide a bond would turn that around,” argues Mr Burke. “Behaviour would be driven from the bottom up, rather than being imposed from the top down.

He also suggested the bond system “would work between the main contractor and principal, just as well as between the subcontractor and main contractor”.

“It’s time New Zealand took action to safeguard the thousands of specialist contractors, who are the backbone of the building and construction industry and essential to our economy and  infrastructure.”