For subcontractors
Check the head contractor before you start the job.
When a builder fails, subcontractors are usually last in line. The warning signs often show up on the public record months earlier.
When to check
- Before you quote or sign a subcontract with a builder you haven’t worked for.
- When payments start arriving late or short.
- Before you order materials for a big stage of work.
What to look for in your report
- Insolvency notices
- Winding-up applications and administrations are published by ASIC. Don’t extend more credit until you understand them.
- ATO tax-debt notices
- Disclosed tax debts can signal cash-flow stress well before a collapse.
- Payment times
- Large businesses must report how long they take to pay small suppliers.
- Court and tribunal decisions
- Security of payment and contract disputes with other trades.
- Fair Work enforcement
- Underpayment and enforcement outcomes against the business.
Red flags
- A recent winding-up application by the ATO or another creditor.
- A history of adjudication or court disputes with other subcontractors.
What a report won’t cover
A report shows what’s on the public record. Do these as well.
- Payment claims answered late, or without a payment schedule.
- Requests to keep working while overdue claims stay unpaid.
- Know your rights under your state’s security of payment law and the deadlines that apply.
- Keep every payment claim, schedule and variation in writing.
- Ask how your retention will be held, and when it will be released.
Give your builder a once-over.
Free report. NSW and ACT builders.