Cabinet Makers Industry Survey

CMAWA Survey – Payment issues in the WA Cabinet Making industry

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Purpose of this Survey

The Cabinet Makers Association of WA (CMAWA) is carrying out a survey of members to assist in getting a better deal for members by seeking some changes in progress payments allowable under the Home Building Contracts Act 1991 (HBC Act).

Following a meeting between the CMAWA and the Minister for Commerce, the Hon Bill Johnston MLA has asked Building and Energy (formerly the Building Commission) to work with the CMAWA to develop proposals for regulatory reform that will assist the cabinetmaking industry while still protecting consumers. This survey is the first step in that process.

Under the current law, Cabinet Makers are effectively unable to charge progress payments to their clients due to the requirement for the materials to pass into the possession of the client. Other than charging a maximum 6.5 per cent deposit, no other payment may be demanded until the materials are placed on the client’s property.

This law works well for most of the building industry, where materials are brought onto the client’s property and work carried out over a period of time, thereby allowing progress payments to be charged along the way. However, it has long been recognised that this law does not work well for cabinetmakers and other sub-groups within the industry that carry out most of their work offsite.

There is little information or data available about the Cabinet Making industry in WA. To justify changes to the current law and possible impacts of changes to those laws, Building and Energy must first obtain information on current payment practices in the Cabinet Making industry and the problems experienced by cabinetmakers in complying with this law. Once this information is obtained, options for regulatory change backed by evidence can then be developed for inclusion in a consultation paper for comment by industry and members of the public, upon which final recommendations for change will be presented to the Minister.

Changes to the law are also being considered in relation to the amount of the deposit that Cabinet Makers can legally charge. One option for change is to increase in the allowable deposit to 20 per cent if 50 per cent or more of the cabinetry manufacture occurs off-site. A similar law already operates in Queensland and Tasmania. To determine the need for such a change in WA, the survey also asks questions about the impact on members of the existing 6.5 per cent deposit limit.

To achieve a better deal for Cabinet Makers, we need your help by answering the questions in the Cabinet Makers Industry Survey and returning them to CMAWA as soon as possible or by MONDAY 10 DECEMBER.

It is important that all survey questions are answered so that a representative sample of industry opinion can be obtained. Where precise information is difficult to obtain or may take too much of your time to provide (e.g. average contract value), your best estimate would be appreciated.

Please note that the data you provide through this survey will have all identifying details or commercially sensitive information removed before being forwarded to Building and Energy. This survey also provides an opportunity to obtain a snapshot of the industry, which will be included in the consultation report.

CMAWA Committee of Management (28th November 2018)

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