Firm Construction: Finance Minister Tony Buti confirms new contractor for Wellard Village Primary School

WA Finance Minister Tony Buti has confirmed that the Department of Finance has secured a new contractor for Wellard Village Primary School after it was revealed on Tuesday the school wouldn’t be ready for the start of the school year due to the original builder being stripped of the contract. In Parliament on Wednesday, Mr Buti said the department was working closely with Firm Construction to ensure subcontractor obligations are met after it was revealed on Monday that the embattled builder was facing significant financial strain. The company was involved in several government contracts, including the construction of the Wellard Village Primary School and the Metronet Bayswater train station, both of which have since been taken off them. It was revealed on Tuesday that the new primary school would not be finished in time for the first day of term, with principal Jaclyn Huts advising parents that it was “likely that works to complete the school will continue throughout term 1”. Mr Buti told Parliament that a new contractor had been hired to finish the school “with minimal disruption to subbies, local families and future students”. “McCorkell Constructions have been appointed to continue the delivery of the school so students and staff can commence on day one, 2023. The new contract includes a requirement to engage as many ex-Firm subcontractors as possible,” he said. A Department of Finance spokesperson confirmed McCorkell Constructions were on-site at the primary school on Wednesday and that “works recommenced with a number of existing subcontractors”. “Activity will increase in the coming weeks as more subcontractors are re-engaged and additional resources are deployed,” the spokesperson said. The Finance minister also said officers from his department have been “proactively contacting subcontractors then working with Firm to validate invoices” to help pay its associated subcontractors via government project bank accounts. “This reflects the important protections offered through Project Bank Accounts, which are in place on all government projects above $1.5 million,” he said. Firm Construction has five remaining government contracts after being stripped of the Wellard Village Primary School project and the Bayswater train station — works at Westminster primary school, the sports hall at Ocean Reef Senior High, modifications at Lakeland Senior High School, and works at Kalgoorlie TAFE and the Yarloop Steam Workshop Interpretation Centre. Regarding the other government contracts, Mr Buti said the department was “continuing to work through any issues”. “The issue of protecting subcontractors – who are generally small and local businesses – is important to our Government. The McGowan Government is focused on introducing industry-wide reforms to provide stronger security of payment protections for small and local business,” Mr Buti said. The first stage of the industry reforms began in August when the Building and Construction Industry (Security of Payment) Act 2021 came into effect, expanding contractors’ rights to claim regular payments. Further reforms are expected to be implemented in from February 2023 and February 2024. “These stages will include a mandatory retention trust scheme, fairer contracting practices and expanded powers against unscrupulous registered builders,” Mr Buti said.