New law proposed to help contractors get paid on time
The Development Bureau on Thursday proposed legislation to make it easier for contractors in the construction sector to get paid on time. The bill would allow a contractor to claim payment every month, even if it's not specified in their contract.  That's a change from the current situation, under which disputes are normally settled only when a contract ends. The bill would also create a new mechanism for settling disputes. A claimant would be able to take their case to an adjudicator, who would make a decision within 55 days.  If payment doesn't arrive, the claimant would be able to suspend or slow down work, and extend the construction period. The bureau said it wants to see disputes settled sooner, so everyone involved can get their money faster. It said contractors should see their finances improve, so they can pay workers on time. Officials expect the Construction Industry Security of Payment Bill to pass later this year and to take effect next year.