Building industry representatives are talking with Nick Xenophon's party about the best ways to protect payments to subcontractors and small businesses.
Senator Xenophon says his support for the government legislation re-establishing a construction industry watchdog was conditional on it reforming the security of payments within the industry.
"The current system is a mess and is hurting many thousands of subcontractors each year," he said on Wednesday ahead of a roundtable discussion with the Housing Industry Association, Master Builders of Australia, the CFMEU and other industry bodies.
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