Smith proposes increased protections for subbies after Mainzeal debacle

By Jonathan Underhill Sept. 9 (BusinessDesk) - Building and Construction Minister Nick Smith has proposed changes to the Construction Contracts Act that would require retention payments be held in trust, ensuring sub-contractors get paid even if the project fails. The proposed law change comes after the failure of the Mainzeal group of companies in early 2013 that left subcontractors out of pocket for about $18 million. Company principal Richard Yan has been fighting in the courts to prevent some of the units being wound up until disputed...