Give A New Life To Your Project And Contract Administration Processes And Reap The Results

In the coming months we will be featuring a series of articles that will speak into your world in a way that will bring new meaning to the dreaded words ‘paper work’, and revitalise not only your desire for, and commitment to, a competent and professional approach to your construction projects, but the very attitudes, processes and structures that you currently use to “get the job done”.

We will be calling this series: ‘Contract Administration 2016‘, and will consist of 8 installments jam packed with tips that, if implemented consistently, will boost your profitability significantly.

We all know that “getting the job done” should be enough to be deserving of payment in full, but it’s just not so.

In this ruthless industry of ours, to ensure you maintain your right and entitlement to be paid in full, and to avoid back charges and damages claims, you need to be at the top of your game when it comes to Project and Contract Administration.

For a moment let’s just focus on our mission here. What does revitalise mean, and why is that our strategy?

Revitalise means: “imbue (something) with new life and vitality.”

Let me go one step further. What does imbue mean? Imbue means: “inspire or permeate with (a feeling or quality).”

Get that? In the context of our work, revitalise means: ‘to be inspired to permeate (affect every last aspect) of the administration processes for our construction project, with new life and vitality, in a quality way.’

Why is revitalising our strategy? Revitalising is our strategy because we are not going to throw the baby out with the bathwater – rather, we are going to build on our current structures and processes and empower ourselves and our people, for the benefit of all stakeholders, not just ourselves, and or, our own company.

Key question: What will this mean for you?

Answer: Better project outcomes, a return on investment in multiple ways.

Note to self: Acknowledge that there will be time, effort and cost involved, but that it will be worthwhile. This, of course, is beside the point, because, put simply, it is the right thing to do anyway. But it is important to know that whatever it is you invest yourself into that you will be glad you did.

Are you sold on “why”?  Will it be truly worth it?  Yes it will.  Increased profitability and better relationships. That has to be worth it, because without both of those benefits we just wouldn’t bother at all, but with those benefits comes all the satisfaction you are looking for.

So.  How?  The crunch question.

Focus again: Our goal is to be paid every last cent we claim, which we have worked for, and to be asked back to do the next job because of your professional approach to your projects.  And we are open to revitalising our thinking and doing because we accept that there is always room for improvement.

We will begin with a careful analysis of your current situation, a questionnaire about your organisation, and a score sheet so that you can evaluate where you are at as an organisation. Then over the coming months as we address the attitudes, processes and structures required for each and every phase of a construction project, you will be able to fill the gaps in your existing processes and structures and take attitudes, and thinking, and doing, to new levels.

Remember, we are revitalising, we are building on and developing your existing skill-sets, processes and structures. All of the principles that we will cover will apply no matter how big or small your organisation is and no matter how small or large the projects are that you are involved in.

In our December Edition we will map out the phases of a typical construction project under the headings; Pre-Construction, Construction, and Post Construction and we will outline essential Project and Contract Administration requirements to help you with the Questionnaire and Score-sheet which will be included.

Until next time, remember, “Prevention is the best cure – Contract Admin counts”.

Townsend Group Pty Ltd in Administration

Are Directors and management at Townsend Group Pty Ltd untruthful, or incompetent, or both?

Mr Russ Hill (Director): “we are not in trouble – keep working” – 2 September 215

Ms Daila Jansons (Director): “we are most definitely not in trouble” –  3 September 2015

Mr David Christie: (General Manager): “we are paying you tomorrow” – 9 November 2015

Adjudication Challenge – Broadview Windows Pty Ltd v Architectural Project Specialists Pty Ltd [2015] NSWSC 955

Security Of Payments Act Adjudication Decisions Are Challenged in the Supreme Court

Broadview Windows Pty Ltd v Architectural Project Specialists Pty Ltd [2015] NSWSC 955

Hearing dates:9 July 2015Decision date:09 July 2015Jurisdiction:Common LawBefore:McDougall JDecision:

Summons dismissed with costs.

Catchwords:BUILDING AND CONSTRUCTION – whether payment claim is valid – where claimant served two payment claims in relation to the same work, but with different reference dates – whether successive payments claims, claiming the same amount, can be validly served under the Act – application of ss 8(2)(b), 13(4) and 13(5) of the Building and Construction Industry Security of Payment Act 1999 (NSW)Legislation Cited:Building and Construction Industry Security of Payment Act 1999 (NSW)
Building and Construction Industry Security of Payment Amendment Act 2013 (NSW)
Evidence Act 1995 (NSW)
Interpretation Act 1987 (NSW)Cases Cited:Allpro Building Services v C & V Engineering Services [2009] NSWSC 1247
Brodyn Pty Ltd v Davenport (2004) 61 NSWLR 421
Chase Oyster Bar v Hamo Industries Pty Ltd (2010) 78 NSWLR 393
Dualcorp Pty Ltd v Remo Constructions Pty Ltd (2009) 74 NSWLR 190
Falgat Constructions Pty Ltd v Equity Australia Corp Pty Ltd (2006) 23 BCLR 292
Grid Projects NSW Pty Ltd v Proyalbi Organic Set Plaster Pty Ltd [2012] NSWSC 1571
Olympia Group Pty Ltd v Tyrenian Group Pty Ltd [2010] NSWSC 319
The Trustees of the Roman Catholic Church for the Diocese of Lismore v F T Woollam & Son [2012] NSWSC 1559
Veer Build Pty Ltd v TCA Electrical and Communication Pty Ltd [2015] NSWSC 864
Rubana Holdings Pty Ltd v 3D Commercial Interiors Pty Ltd [2008] NSWSC 1405Category:Principal judgmentParties:Broadview Windows Pty Ltd as Trustee for the Aras Trust (Plaintiff)
Architectural Project Specialists Pty Ltd (First Defendant)
Adjudicate Today Pty Ltd (Second Defendant)
John Goggins (Third Defendant)Representation:Counsel:
P Rodionoff (Plaintiff)
R Green (First Defendant) (Solicitor)

Solicitors:
Nil (Plaintiff)
Richard Green Construction Lawyers (First Defendant)
File Number(s):2015/115032

This hearing and subsequent judgment confirmed that claimants have 12 available reference dates upon which to serve payment claims in New South Wales under the Building & Construction Industry Security Of Payment Act 1999 Legislation.

Read the full judgment here.

Stand Up For NSW Building & Construction Subbies Please Premier Mike Baird

Read RECOUP’s Open Letter to Premier Mike Baird here

Send Premier Mike Baird a message here

Open Letter to Premier Mike Baird

6 March 2015

For and on Behalf of NSW Building & Construction Subcontractors

Dear Premier,

Re: New South Wales Building and Construction Businesses

Recoup acts for a large number and variety of consultants, suppliers, subcontractors, contractors, and builders who carry out construction work and/or provide related goods and services in the state of New South Wales.

We act for them in the capacity of ‘Debt Recovery Specialist Consultants’, using the Building and Construction Industry Security of Payment Act 1999 legislation.

This legislation is vital to many mums’ and dads’ small businesses that are the main source of income to these families. This legislation is also vital to both small and large businesses generally, ensuring payment for their work carried out, and/or related goods and services provided, is easily obtained with minimum outlay, and minimum delay.

We write to you to strongly emphasise the importance of this legislation to all stakeholders in the New South Wales building and construction industry, and to ask on their behalf that you not go down the path of Campbell Newman, who made significant changes to Queensland’s counterpart legislation only late last year that has severely weakened the power of the legislation to assist claimants obtain their entitlements.

We ask for an undertaking from you that you will ensure that no changes are made to this legislation while ever you are Premier of our state that will water down the crucial balance of power that this legislation provides for helping claimants obtain their entitlements.

In fact, we ask that you instruct the relevant Minister and government department to work toward further bolstering the legislation to ensure unscrupulous debtors are prevented from evading payment by way of the following suggested changes.

1. Reference Dates

We suggest that the legislation be changed to identify reference dates as occurring on each ‘calendar’ month, instead of each ‘named’ month, and that there be twelve reference dates available to a claimant after the last time they worked on a project.

2. Trust Accounts

We suggest that the legislation is changed to require that any party in the contracting chain who receives payment for work carried out by a third party put the payment due to the third party into trust until it is due to be paid to that third party. We also suggest that this will apply to all payments, not just retentions, and to all projects over and above the value of $50,000.

3. Due Date for Payment

We suggest that the due date for payment be changed back to the default of ten business days, and that the current ‘fifteen and thirty business day’ default become the maximum period allowed as a due date for payment.

In closing, we would like to advise you that Recoup is holding a workshop which will help ‘everyday builders’ focus on how this legislation can be best utilised to manage relationships and claims. We invite you, or the relevant Minister, or a representative, to take the opportunity to briefly address the workshop. It is being held at ‘The Hall’, Auburn Baptist Church, 16 Harrow Road Auburn NSW 2144, on 12 March 2015, 3pm. We will have the media in attendance, and hope that we can all make the most of this opportunity to spread far and wide the good news of this vital piece of legislation and your government’s commitment to it.

I thank you for taking the time to hear our concerns and requests. I trust that our values and aspirations align with yours, and I look forward to your reply.

Yours faithfully

RECOUP Contractor Debt Recovery

Mike Baird – Please Help Building & Construction Subbies

Building & Construction Subcontractor Payments

Subbies and their families need to know that the cash-flow required to support their family’s livelihoods is supported by the Security Of Payment Act regime.

Barry O’Farrell, notoriously, told subbies where to go during the Geoff Reed Constructions fiasco, but even worse; he changed the Security Of Payments Act legislation for the worse before being exposed as a corrupt official.

Building & Construction subbies need Mike Baird to stand with them and their families, change the legislation back and strengthen subbies rights even further.

If you want to send Mike Baird a message use the form to the right and RECOUP will present all requests directly to the Premier before the upcoming State Election.

Read RECOUP’s Open Letter To The Premier here