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Tips for Subcontractors on getting paid and insolvency
Significant fallout can be caused when a business becomes insolvent. As a subcontractor, you should learn what steps to take to protect yourself from risks associated with insolvency.
There are certain signs that businesses give off when they are in financial distress and at risk of insolvency. These ‘red flags’ include:
- regular late payment
- sale or repossession of assets
- other contractors and suppliers complaining of late or non-payment
- change in employment status or reduction in employees
- issues with payment for materials and supplies.
As a subcontractor, you can minimise the risk of working with a business that may be in financial trouble by looking out for these signs and taking certain steps to safeguard your interests.
These steps should be adhered to before signing a contact as part of your due diligence and during the period of works. Upon completion of the works, there are several options you can pursue in the event of non-payment.
Find out more about insolvency and how to manage it when you read this resource.
Access this resource now
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Who is it for?
Building Professionals
This resource is designed for builders and industry professionals who want to understand the risks associated with insolvency and how to spot businesses that may be experiencing financial distress.
What does it include?
- Tips on getting paid
- The importance of pre-contract due diligence
- What to look for while works are underway
- What to do if you haven’t been paid.