The deregistration of home builder Nicheliving, which by all reports is in deep financial stress and being chased by trade creditors as well as clients, perfectly illustrates why contractors must get firmly in control of managing their bad debt risk. We want to remind members about resources and services that are available to assist them.
For anyone who hasn't been following the Nicheliving saga, the following links will help bring you up to date.
With the current economic climate and the building and construction industry's never-ending problems with business failures, knowing how to protect yourself against bad debts is even more important than ever. As a minimum, this means having correctly worded contracts, solid business processes and some knowledge of WA's security of payment laws.
The Master Plumbers and Gasfitters Association of WA provides members with assistance in this area, while Building and Energy provides free educational material about the security of payment laws.
For members of The Master Plumbers and Gasfitters Association of WA
If you're not a member of The Master Plumbers and Gasfitters Association of WA, sign up now.
- Debt collection service. This is provided by a professional, no-nonsense company that will give you good advice. If you are a member, log in to the members area of our website then find Member Services and select Debt Collection.
- Debt collection guide. This is well worth a read and packed with tips and practical advice. You can find it via the above-mentioned debt collection service page, or go to 'Debt Collection for Beginners' in the Guides section of the members area.
- Security of payment law guide. A plain English explanation that covers the key points. Go to 'Security of Payment Law' in the Guides section of the members area.
- Business mentoring program. If you're serious about getting all your business systems and procedures into shape, this is for you. Go to 'Business Mentoring Program' in the Member Services section of the members area.
Building and Energy's educational resources
- Educational videos and fact sheets on the new security of payment laws
- User guides and templates for making and responding to payment claims
- A contract template (for small value construction contracts)
- A Factsheet and Retention Money Trust Accounting Guidelines to assist industry understand retention money reforms
- Industry updates on changes to registration requirements for building service providers
- User guides for the rapid adjudication process
The above list is from Building and Energy's Industry Bulletin 159, published in February 2024.
