Australia has recently been highlighted as the worst country at paying invoices out of a survey of 80 countries. The study was measured in the amount of days early or late that an invoice was paid and as you would expect the efficient Germans were 0.5 days early on average while the UK were 5.85 days late and waaay down the bottom is where Australia sit at 26.4 days late. source
While I don’t have a statistic on exactly how much of this is construction based I am willing to put my neck out as a former carpentry sub-contract company owner and say that it could be even more than the average 26.4 days.
What does this mean for you - the subbie, at the heart of the construction industry, the person putting dollars in the worker's pocket??
What is happening is the big guys are using their influence and ridiculous pay terms on contracts to ensure that the money stays in their bank account longer thus minimising the amount of interest they have to pay to the banks who have funded their developments - so i suppose you could say that the subbies who are doing the work and paying their guys week in week out while waiting 8-12 weeks for their payment are funding the building of these huge projects.
Our goal here at ConX is to work with all the stakeholders on a project and ensure that an invoice never goes a day over the agreed terms in the contract. It’s time the people doing the work got a voice and took control of the efficiency of their payment. We get it - most of our members are only ever one or two defaulted invoices away from going bust if the main contractor folds...
By winning tenders and accepting jobs through ConX, we’re working to eliminate the risk of guys defaulting on you. Build yourself a free profile on our network today and let us know what you think. www.conxjobs.com