Security of Payments Act Blog by Recoup

Subcontractors Demand Pay – click here to read this article on the Financial Review website or click the image on the right to enlarge…

 

 

 

 

 

 

 

 

 

Even after Open Letters to the Premier in today’s papers Subcontractors just don’t rate importance to Barry O’Farrell.

Today we a filing more applications at the District Court, Downing Centre, Sydney to force Barry O’Farrells NSW Governmemnt to pay Subcontractors for work they have completed on NSW Govt Projects they completed under the management of Reed Constructions Australia.

We are forced to do this because Barry O’Farrell refuses to ensure Subcontractors that are struggling to survive receive the money that the Expert Panel he appointed which has determined that money is owing by the NSW Govt begins to flow to Subcontractors immediately.

NSW Public Works recently certified millions of dollars to be paid to Subcontractors who worked on NSW Public Housing Projects for St Hilliers but now Barry O’Farrell wont release this money to the Subcontractors.

Barry O’Farrell last week tore up the Reed Constructions Contracts, although we are not exactly sure why yet we do know this will mean more Subcontractors suffer and that the NSW Taxpayers will pay more and wait longer for the major roads infrastructure works involved to be completed by another contractor.

All the talk in the industry is that representatives of the Roads & Maritime Services were aware Subcontractors werent being paid by Reed but still paid Reed money which should have made its way to Subcontractors but didn’t. Some Subcontractors even sent Statutory Declarations of their own to this effect to the RMS at the insistance of RMS Project Managers to no avail. The Subcontractors continued on with the work in good faith on the advice of RMS representatives that they had checked out Reeds financial position and that everything would be ok – where has this got them

Barry O’Farrell the week before last tore up the St Hilliers Contracts, although we are not exactly sure why because many other Govt agencies didn’t yet we do know this will mean more Subcontractors suffer and that the NSW Taxpayers will pay more and wait longer for the Public Housing works involved to be completed by another contractor.

Tim Casey, CEO of St Hilliers made it very clear to Quentin Dempster of the ABC after last weeks Creditors Meeting that there is no doubt that Subcontractors will be worse off as a consequence of the NSW Govt taking the Contracts from St Hilliers.

I know, after more than 30 years of experience in the construction industry, and I am certain everyone in the construction industry would agree, that the NSW Govt Projects that have been taken off Reed and St Hilliers will now blow out significantly in both time and cost because of what is involved in mobilising a new contractor and new subcontractors. Further the new contractor will not warrant the previous contractors works and this will be a disaster in itself especially for the major road works sub base.

Barry O’Farrell , his NSW Govt and his Departments are clearly bungling major projects at the expense of Subcontractors and NSW Taxpayers.

Newsflash……..May 25, 2012…….RECOUP Clients the first to be paid as the Reed Constructions Australia Pty Ltd saga continues !! This week two of our clients received New South Wales Government cheques direct from the Roads & Maritime Services as full payment for the successful claims RECOUP brought against Reed in the last few months. And we haven’t finished with Reed or the NSW Government yet ! We are making fast progress with more claims under the Security Of Payments Act for other clients of ours that are owed money by Reed. This week has definitely shown WE ARE No 1 FOR CONSTRUCTION DEBT RECOVERY ! RECOUP are Australia’s Security of Payments Act Experts ! If you are owed money by Reed or anyone for that matter DO NOT DELAY contact us immediately and we will serve a Payment Claim on Reed the same day and get you on the way to being paid quickly. *** I attended the St Hilliers Construction (in Administration) Pty Ltd Creditors Meeting this morning and experienced firsthand the disappointment of so many Subcontractors who are and will be affected by more rough treatment from the NSW State Government. St Hilliers are endeavouring to trade out of their financial difficulties but have had the rug pulled from under them by the NSW Government. Only a matter of weeks ago the NSW Govt awarded St Hilliers 13 Housing Projects to complete – this was great for the subcontractors involved. A clown named Greg Pearce, the NSW Minister for Finance & Services, was the person responsible for this ridiculous decision. This decision only serves to disadvantage everyone – especially Subcontractors. Barry O’Farrell should sack Greg Pearce now and re-instate St Hilliers as the Contractor for these works immediately. Greg Pearce’s continued bungling of the running of his own department and his negative, destructive approach to the Reed debacle is costing Construction Industry Subcontractors dearly – subbies, small mums & dads businesses are only just hanging in there while Greg Pearce fails to get the money that is rightfully due to them quickly enough. *** Our industry, the single largest industry in Australia, 4 times bigger than the mining industry needs more reform to the Security Of Payments Act to protect Subcontractors payments and move is afoot to make this happen sooner rather than later – hopefully the Government the people have elected to serve them will support the necessary reforms and bring them to fruition without delay. Tonight at 7.30, on ABC1 TV, Journalist Quentin Dempster exposes the harsh treatment Subcontractors are suffering in our industry – not to be missed TV !!

Yours faithfully, The Managing Director RECOUP Debt Recovery Pty Ltd Phone: 1300 732 687 www.recoup.com.au

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, http://www.abr.business.gov.au/Index.aspx 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 http://www.search.asic.gov.au/gns001.html 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 https://creditorwatch.com.au/ 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 : recoup.com.au

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 : claims@recoup.com.au

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

Is “Who” you are or will be working for going to pay you ?

In the current uncertain times for the Building & Construction Industry this question is more important than ever.

And never forget; Prevention Is The Best Cure.

So, “Who” are you working for ?

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

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

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.

How to establish your potential Clients credibility and trustworthiness is essential for you.

Put quite simply; should you extend credit to this person or company ?

The best way to come to a wise decision without offending anyone and damaging customer relations is to complete a series of checks via publicly available information discreetly that provide all the information you need to know about their credibility – or in other words your exposure.

In our next Post we will detail the Project / Client Checklist that ensures you are fully informed before it’s too late.

In the meantime please visit our website for Security Of Payments Act information on how we may assist you further : recoup.com.au

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 : claims@recoup.com.au

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

Welcome to our very first Post !

We trust we will provide helpful information and assistance to all hardworking Subcontractors, Contractors, Consultants & Suppliers in the Building & Construction Industry Australia wide.

Our Company Creed is “A Laborer Is Worthy Of His Hire”. In other words, if you have done the work or supplied the goods you should be paid.

We are committed to providing the very best service possible to assist you in the recovery of the debt owed to you as a Subcontractor, Contractor, Consultant, Supplier by a Builder, Developer etc.. in the Building & Construction Industry.

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

Please visit our website for information on how we may assist you with Construction Debt Recovery further and use our site as a valuable resource for understanding the security Of Payments Act : recoup.com.au

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

Our Email is  : claims@recoup.com.au

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 !!

And if you would like to suggest a topic you would like us to cover please let us know by email and we will get right on it !

Best Wishes

RECOUP Contractor Debt Recovery