While building sub-contractors often destroy building sites as last resort to not getting their invoices paid there are ways subbies can ensure their invoices are collectible.

Melbourne Construction Gateway co- founder Marg Lange is not shocked by the recent video footage of a building subcontractor that recently went viral when he used a chainsaw to take revenge out on the builder who was slow to pay his invoice.

“It is common practice that building sub-contractors damage building sites as a last resort to not getting paid,” Marg said.

“But let’s face it, there are so many obstacles that building sub-contractors must face to get paid.”

“Firstly there is retention in an invoice which means a percentage of the invoice due and payable is held back by the builder or property developer to cover the faults and defects on a building project.”

“This inevitably means that the remaining percentage of the invoice could be paid a year later,” she said.

“Progress payments that are paid to the lead contractor (builder) gives him the power to determine who gets paid and when which further disadvantages the smaller sub-contractor who is powerless to challenge contracts that are not written in their favour.”

“Contracts are often 110 pages thick and a subbie with three employees cannot afford the time nor the cost of the legal advice he needs.

“This means he is signing and hoping for the best,” she said.

“When setting up the Melbourne Construction Gateway with my business partner Martin Cattach, I was shocked to learn the number of building sub-contractors who don’t know what is available to them.”

Through becoming a member of the Melbourne Construction Gateway building sub-contractors will have the practical tools to help them secure payment by:

1. Giving access to specialised construction legal experts

This will help building sub-contractors navigate the Security of Payments Act and protect their legal rights for payment.

2. Providing cutting edge software to chase up unpaid invoices

Time saving credit management software that will auto generate invoices, reminder letters and sms. It also provides reports to ensure those that haven’t paid are followed up promptly to an end solution where legal letters are sent out.

3. Cash flow funding support and Finance advice to ease the pain that unpaid invoices create

Martin Cattach and Marg Lange are experts in the construction field in providing cash flow funding for subcontractors who are waiting on payment to help them grow their business.

4. Invoice reviews by our Mercantile Agents to ensure invoices are more collectible

Our Mercantile Agents work with our members to review the terms and conditions of invoices which can be enforced legally should the worst thing happen.

5. Educating our members about trade insurance to mitigate the risk of not being paid

Many sub -contractors are unaware that their invoices can be insured up to 80% of their value which in the event of them not being paid will provide the money to continue trading.

Marg Lange has along with Martin Cattach launched Victoria’s first Melbourne Construction Gateway which supports a fair go for Building sub-contractors to get paid and find on going work. Understanding the impact of failure to get paid is devastating to the business, family and lifestyle the Melbourne Construction Gateway is committed to support building sub- contractors

Information about membership to Melbourne Construction Gateway: www.constructiongateway.com.au