Subcontractor rights in focus as insolvencies surge

Subcontractors in the building industry need to be aware of their rights under the law, given the troubles in the industry and recent company collapses, NSW Small Business Commissioner Chris Lamont has warned.

Monthly business insolvencies across Australia almost doubled between March 2023 and March 2022, from 464 to 828, with 243 construction companies being placed in administration in March alone.

Mr Lamont urged subcontractors to use the Commission’s resources to familiarise themselves with the law and their entitlements before a payment issue arises.

“Builders, tradies, subcontractors, consultants and suppliers have protections under the Building and Construction Industry Security of Payment Act 1999 (NSW) and Building and Construction Industry Security of Payment Regulation 2020 (NSW) that help to ensure they get paid,” Mr Lamont said.

“There are also good practices subbies should be following to minimise their risk, such as establishing scheduled progress payments, having a written contract, good record keeping and rapidly responding to payment issues.”

Links:

• Advice for building and construction subcontractors
• Getting paid in the construction industry factsheet
• Construction industry video tips