Concrete and formwork subcontracts in Western Australia: what to check before you sign
In Western Australia, a concrete subcontract is read alongside the Building and Construction Industry (Security of Payment) Act 2021 (WA), which caps subcontract payment terms at 25 business days. The contract itself still decides the risks that cost concrete and formwork subcontractors most: liquidated damages without a cap; weather and inclement days; quantity and design changes.
AI risk report, not legal advice. The scanner gives general information about the risks in a document. It is not a lawyer, does not know your circumstances, and can be wrong. For decisions with legal consequences, get advice from a construction lawyer.
Western Australia rules that override your contract
Statute: Building and Construction Industry (Security of Payment) Act 2021 (WA)
- Payment terms for subcontractors are capped at 25 business days after the payment claim. A longer term in the contract doesn't change that.
- If the builder disputes a payment claim, it has to answer with a payment schedule within 15 business days (or any shorter period in the contract).
- Two regimes run in parallel: contracts entered into from 1 August 2022 sit under the 2021 Act (East Coast model), while older contracts stay under the Construction Contracts Act 2004 with its 90-business-day adjudication window. The contract date decides which set of rules you're under.
- Adjudication: under the 2021 Act, through authorised nominating authorities; under the old CCA 2004, an application must be made within 90 business days of the payment dispute arising.
- A retention trust scheme is phasing in.
Where concrete and formwork subcontractors lose money
Liquidated damages without a cap
Because structure sits on the critical path, a late pour can delay the whole project. An uncapped liquidated damages clause exposes you to the builder's entire delay cost. Push for a cap, commonly 5 to 10 percent of the subcontract sum.
Weather and inclement days
Check whether wet days give an extension of time automatically or only above an allowance, and whether you need to notify each day. A daily notice requirement with an absolute bar is easy to miss in a wet month.
Quantity and design changes
Thickened slabs, extra reinforcement and late design changes change your quantities. A lump sum with no remeasure or rates for changes leaves the extra concrete and steel unpaid.
Pump, crane and access dependencies
If access, crane time or pump positions depend on the builder, the contract should treat interruptions as delay events, not your risk.
Three things to push for in your departures schedule
- Liquidated damages capped at 5 to 10 percent of the subcontract sum
- Extension of time for inclement weather with a simple monthly notice
- Agreed rates for quantity changes and design revisions
The free scanner finds these clauses in your actual contract in about two minutes and writes the departures schedule for you.
What the Index says
Live figures from the Australian Subcontract Index, 90 real subcontracts. The Index holds only 8 concrete and formwork contracts so far, under the 10-contract threshold, so these are national figures across all trades. Nothing under 10 contracts is ever shown.
Concrete and formwork subcontracts in other states
Concrete and formwork subcontracts in WA: common questions
How long does a builder in WA have to pay a concrete and formwork subcontractor?
No more than 25 business days after your payment claim, whatever the contract says. If the builder disputes the claim, it has 15 business days to answer with a payment schedule giving its reasons.
Are uncapped liquidated damages normal in concrete subcontracts?
They are common, which is why they are worth negotiating. An uncapped clause can expose you to the builder's entire delay cost for a package that may be a small share of the project. A cap of 5 to 10 percent of your subcontract sum is a widely used market position.
Where do WA concrete and formwork payment disputes go?
Building and Energy, WA (DEMIRS), authorised nominating authorities. Timing: under the 2021 Act, through authorised nominating authorities; under the old CCA 2004, an application must be made within 90 business days of the payment dispute arising.
Is this legal advice?
No. It is general information about common subcontract risks and the state's payment law as recorded in our registry. Statutory details change; check the current Act, and take the scanner's report to a construction lawyer for decisions with legal consequences.
General information, not legal advice. Statutory details are taken from our state law registry and change over time; verify them against the current Building and Construction Industry (Security of Payment) Act 2021 (WA) before relying on them. Built by Mat Kennedy, Founder, The Construction Contracts Co.