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In our last Post we promised to ……

“detail the Project / Client Checklist that ensures you are fully informed before it’s too late.”

So here it is…. And its FREE !!

First and foremost you need to know exactly what type of entity you will be contracting with – this is imperative for making a Security Of Payments Act claim so it must be right.

Will the contracting entity be an individual person, a partnership, a company or some other type of organisation,

Ask your prospective client this exact question. And also what the ABN (Australian Business Number) is that they will be using.

These days Google is as good a place to start as any. Use Google to verify what you know so far and as a basic investigation to see what else turns up that may influence your decision to proceed.

Next look them up in the White & Yellow Pages. Print out everything as you go.

If your prospective client that will be contracting with you is an individual or a partnership go to ABN Lookup, and search both by name(s) and ABN if you have it already. If you don’t the search will give you their ABN.

If your prospective client that you will be contracting with is a company or an organisation go to ASIC and search both by name(s) and ABN if you have it already. If you don’t the search will give you their ACN (Australian Company Number) and their ABN. Note their “Status” – it should say “Registered”. Also note any recent activity  / changes in their company. You can also order a full extract here which will tell you Shareholder and Directors full names and home addresses.

Lastly go to Creditor Watch and check out if they have any defaults against them.

If all the above checks are satisfactory go to the next step. But if they are not, ask your prospective client for clarification and approach with caution.

The Next step is to ensure all of the necessary details are on your Quotation, your clients Purchase Order / Contract and that all these details are correct.

The following details are critical :

  • Your entity name in full
  • Your ACN (if you are a company)
  • Your ABN
  • Your address for correspondence
  • Your phone number
  • Your fax number (faxes are best for service of claims and legal notices and always keep the transmission report.
  • Your email address
  • Your client’s entity name in full
  • Your client’s ACN (if they are a company)
  • Your client’s ABN
  • Your client’s address for correspondence
  • Your client’s phone number
  • Your client’s fax number (faxes are best for service of claims and legal notices and always keep the transmission report.
  • Your client’s email address
  • Project Details & Site Address
  • An exact description of the service and or product you are providing inclusive of itemised costings and the agreed start and finish dates for the Contract Works.
  • Terms of Payment must be agreed to and clearly stated.
  • Reference Date.You should also nominate and agree on the day each month that you are allowed to make a progress claim. Most times it is the last day of the month. This is called the Reference date. This is important under the Security Of Payments Act because under the Act you are only allowed to make one claim per month / reference date. You claim must be made on or after this date for the works preceding this date that haven’t been claimed for previously. However you can include any unpaid portions of previous claims.

There you have it – be strict with the above and you are off to a good start !

In the current uncertain times for the Building & Construction Industry getting all of the above right is more important than ever.

And never forget; Prevention Is The Best Cure.

So, know “Who” are you working for !

“Who” are you quoting / tendering on work for !

And “Who” are you about to accept an order from or enter into a contract with !

And don’t forget the good old fashion approach : ask your prospective client to complete a Credit Application form with a Personal Guarantee and at least 3 solid trade references !!

Once you establish “Who” you will be working for, you will either have confidence that you will be paid for your goods & services without any fuss, or you will have doubts that any involvement at all may not be a good idea.

Peace of mind before you lock yourself in is a better place to be than regretting being stuck in a situation that is not turning out how you hoped.

In our next Post we will detail the importance of Site Diaries and General Contract Administration – especially for Variations.

In the meantime please visit our website for information on how we may assist you further :

In most instances we use the “Building & Construction Industry Security Of Payments Act” to recover your money but not always – there are sometimes more appropriate options.

You may call us on 1300 RECOUP (1300 732 687)

Our Email is :

Please follow our Security Of Payment Act Blog as we bring you important information on Construction Debt Recovery that will you help you get paid for all of your hard work !!

Best Wishes

RECOUP Contractor Debt Recovery