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Making sure you get paid on time

Sunday, July 29, 2018

Here’s an easy question! What’s the most important thing in business? Answer: Collecting the money you are owed!!! Simple answer, hey, but something too many small business people don’t follow.

Having systems for prompt small business payments is a priority campaign for us. See here and here.

The construction sector is one where too many subcontractors think they have to keep working on a project even when the head contractor fails to pay them. Unlike Bill Murray in the 1993 movie Ground Hog Day, living the same thing (not being paid) over and over does not have a happy ending. Subbies go broke!

The Federal Australian Building and Construction Commission (ABCC) has announced new steps to enable subbies to be paid, and to be paid on time. We’ve been on the ABCC’s consultative Security of Payments Working Group for some time. We’re pleased to see the ABCC’s new moves.

The key to this is that if a head contractor is on a project funded or partially funded by the Federal Government, the head contractor has an obligation to pay subbies on time. If they fail to pay properly, the contractor can be denied access to government-funded projects. It’s a big commercial stick.

But such a rule is only effective if it’s enforced. The ABCC is upgrading its enforcement. So, subbies, make sure you know your rights!! Information on the ABCC Security of Payments processes is here.

Don’t forget that Self-Employed Australia Protected Members have access to assistance if you have an unfair contract. Joining options are here.
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