Christos I do not consider myself any kind of expert on anything and my views flex and change as I learn.
Here are kinds of stories and comments that’s are the basis for views I currently hold:
Basically it seems to me it is -not that people don’t know who they are sleeping with, but that there is built in the system a lot of potential for short sheeting .
Maybe contractors know it when they tender but still that’s the market ...people need to work .
As I said before I am not asking for any Government handout to put RCR on its feet again . In a post the other day I mentioned
maybe it could happen. This was basically a jest as much as expecting Dr Dagleish ( the next post) to return was a jest. That particular jibe at Government was completely based around cynicism that it is supporting the big players like CIMIC by trying to make it easier and easier for them to tender and that this seems (to me) to result in pain and grief for local players as the big internationals drive them out of business one way or another .
As to potential intervention I think this is :
1) more about changing the rules to ensure sub contractors are paid promptly - ie the project managers don’t delay .
2) introducing changes so that contractors are not obliged to stand by quotes when the government introduces variations.
I bekieve point 2 is the reason ACCIONA is suing the NSW government for $1.1 billion
https://www.abc.net.au/news/2018-04-07/light-rail-contractor-sues-nsw-government/9629948https://www.abc.net.au/news/2018-08-29/subcontractors-on-nsw-infrastructure-lack-safeguards/10177084“I rail against this, when contractors use the money due to be paid to subcontractors for their own operating expenses," Ms Hobbs said.
York Civil is the latest company working on the Pacific Highway upgrade between Woolgoolga and Ballina
to go into voluntary administration, leaving some subcontractors out of pocket.
One subcontractor who spoke with the ABC said he was now owed $9,000 by York Civil and its joint venture partner, Spanish company OHL.”
https://www.abc.net.au/news/2018-08-29/subcontractors-on-nsw-infrastructure-lack-safeguards/10177084“It is a basic right for any business owner to get paid for the work done,” Ms Stewart said, adding if you weren’t paid you should be allowed to stop work.
She hoped the McGowan Government would adopt the Murray review, leading to “an improved culture of fair and prompt payment”.
“(State Government departments) have a misguided belief they are saving taxpayers money by going for the cheapest tender response and then turning a blind eye while subbies get screwed to make up for the real cost of delivery,” she said...”
https://thewest.com.au/business/inf...ay-price-for-main-roads-savings-ng-b88994838z“Subcontractors WA chairwoman Louise Stewart has blasted Main Roads WA’s “savings” on multimillion-dollar infrastructure projects, saying taxpayers are picking up the tab, plus the extra cost of collapses, job losses, unpaid bills and anguish.
More than $50million had not been paid to subcontractors working on Main Roads projects this year, with big names including Brierty, York Civil and Marine & Civil going into liquidation.
Ms Stewart urged Main Roads to take responsibility for unfair contracts, non-payment and disputes on its projects.
A week ago, Omega Constructions, a subcontractor working on the $1 billion NorthLink WA, revealed it expected to go into administration after the lead contractor terminated its contract. Great Northern Connect is the BGC Contracting-Laing O’Rourke joint venture building the $437 million second stage of NorthLink...”
Another link here :
https://thewest.com.au/business/the...contractors-from-financial-ruin-ng-b88782988zCheers
