Getting paid

When you provide services as a contractor (whether a builder, trade contractor or a subcontractor), one of your biggest goals is getting paid.

There are many avenues you can take in certain situations and the trick is understanding what’s available to you. We’ve developed some tips for understanding what you need to know and your options and rights when it comes to payments, as well as information on progress payments, the use of our Holding Account and getting paid during administration, liquidation and bankruptcy.

Make sure you have the correct licence to complete the work

If you don't have the correct licence, then you aren't entitled to be paid under the contract for any work that you have performed. This includes work that you are licensed to perform if it forms part of the same contract. You may be entitled to claim for some payment through the courts, but not under your contract. This also means that you aren't permitted to use the Building Industry Fairness (Security of Payment) Act 2017 to enforce your payment rights.

Get it in writing

Getting your contracts in writing will assist you in getting paid for your work and is the golden rule to avoiding or minimising disputes down the track.

Read and understand the contract

It's important that you read every contract before you sign so that you understand the contents of each contract. If you don't understand the contract, get in touch with us.

Be as specific as possible with building specifications

The price that you charge for your work is based on the specifications, so be as specific as possible. If the specifications are vague or just plain wrong, you might find yourself providing additional services and not getting paid for them.

Use Master Builders holding account

Master Builders members can use our holding account to deposit money into for security of payment.

Submit progress claims on time

You must understand when you are permitted to make a claim for payment under your contract. This may be on completion of each stage of work. For example, completion of the slab, erection of the frame, completion of landscaping works, etc. Or, your contract may state that you may make a claim for payment each week or month. In either case, make sure you submit your progress payment claims on time and in the manner required by your contract. If you don't, you may not be entitled to payment and may have committed a breach of your contract.

Make sure any variations to the contract are in writing

If you don't have a written variation, you may have difficulty in proving that the variation was ever agreed to (particularly if you find yourself in a dispute situation) and not get paid for the extra work. Failing to document variations in writing (for domestic work) is also a breach of the QBCC Act.

Be aware of the Building Industry Fairness (Security of Payment) Act 2017

This legislation can help you get paid if you comply with the requirements of the BIF Act. However, this legislation also contains serious offences if you don't respond to payment claims made by other parties to you.

If you find yourself in a dispute with a client over payment, Master Builders can help you resolve the dispute. Read more about avoiding and managing disputes or phone us or email us for advice and assistance.