Bullish Sign? - Bounced off 200 EMA, page-2404

Cited recently are examples of companies driven to the wall because margins are so tight.
Government Road building contracts seem to have been a large part of the bête noir for:
Brierty just over a year ago, https://www.watoday.com.au/national...perth-companies-collapse-20170907-gycqae.html,
Otswaald Brothers https://www.abc.net.au/news/2018-05-20/pacific-highway-subcontractors-owed-money/9780968
York Civil in August https://www.abc.net.au/news/2018-08-13/construction-company-york-civil-ceases-trading/10113748
Omega Construction last month
https://thewest.com.au/business/con...ction-on-edge-of-administration-ng-b88989023z
These are just the instances that spring to mind .


Here’s some excerpts from a story about how the Government is now looking to reform ‘The Building and Construction Security of Payment Act’

https://www.abc.net.au/news/2018-08-29/subcontractors-on-nsw-infrastructure-lack-safeguards/10177084
Subcontractors on $87 billion worth of NSW infrastructure lack safeguards, commissioner says
ABC North Coast
By Hannah Ross and Leah White
Posted 29 Aug 2018, 1:52pm
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“Infrastructure projects worth $87 billion being rolled out across New South Wales over the next four years are being carried out with no safeguards to protect subcontractors' businesses, a Government commissioner has revealed.
New South Wales small business commissioner Robyn Hobbs has hit out at the building and construction sector, saying "unconscionable" practices remain rife.
"I rail against this, when contractors use the money due to be paid to subcontractors for their own operating expenses," Ms Hobbs said.
York Civil is the latest company working on the Pacific Highway upgrade between Woolgoolga and Ballina to go into voluntary administration, leaving some subcontractors out of pocket.
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Trust system considered to protect subcontractors
Following the collapse of Ostwald Brothers last year, the State Government was forced to reimburse 23 subcontractors owed more than $7 million.

The Government is now looking to reform the Building and Construction Security of Payment Act and is seeking feedback on the idea of a cascading statutory trust system.

Minister for Better Regulation Matt Keane said previous reviews of the act showed a trust system was the best way to protect subcontractors down the contractual chain from insolvency or misuse of funds further up the chain.

Mr Keane said 20 per cent of all company insolvencies in New South Wales over the past 10 years had been in the building sector.

He said while the review was still under discussion and would ultimately require legislative reform, its success would depend on the Office of Fair Trading's ability to enforce the trust system.

Ms Hobbs has welcomed the review, but said industry reform was being opposed by some of the big players.

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