Protect Yourself with Progress Payments

March 18 2016   04 PM  

There are payment requirements in the building and construction industry that principals, general contractors, subcontractors and suppliers must follow. These are regulated by the Building and Construction Industry Security of Payment Act 1999 (the Act).

As a contractor providing goods or services as part of construction work, you're entitled to receive ‘progress payments’ for work delivered. It doesn’t matter whether a contract is verbal, written or non-existent, you’re still entitled to them. And if a contract states the contractor cannot claim progress payments, it’s incorret, because the law says you can!!

Payment Claims

Unless otherwise stated in the contract, progress payment claims can only be made once per month. The progress payment amount is calculated based on: 

  • the terms of the contract, or
  • the value of the work carried out (if not specified in the contract terms).

Issuing Invoices

When issuing invoices, be sure to mark them with the disclaimer “Payment to be made in accordance with Building and Construction Industry Security of Payment Act 1999 (the Act). If you use a program like Xero, this can be easily formatted into your invoice template. 

Enough is enough!

We’re all getting sick of being ripped off, and the sad truth is, the is a serious lack of regulation to protect against it.

ConX is launching a new peer review rating system in the coming weeks. Contractors will be rated on “speed of payment” by the subbies who have worked with them before to give you transparency when deciding what jobs to take on and what jobs to stay well away from.