Excellent Andrew! I did enjoy this less regular but more in depth note.
Question - 1st of each month - if a weekend or public holiday, do you move to 2nd or 3rd? Or it’s 1st of month rain hail or shine?
Recommendation - debt collection through security of payment legislation. Up front fee rather small, if adjudicator finds in your favour (highly likely) then fee is assigned to the client. 100% success rate recovering entirety of unpaid invoices thus far. Alas I’ve had to use this 4 times in 5 years of business (but I tend to skip step 9 😬)
Oh man - sorry to hear you have had to implement this a handful of times -but that is great news for a 100% success rate - I have only had to go through this once.
I'll have to get up to date on Security of Payment - I should say:
- most of our work is residential (where the Security of Payment Act did not apply)
- most of our work is in NSW (the act is slightly different in each state)
- on our commercial NSW projects (few and far between) we do place at the bottom of each invoice:
"This is a payment claim made under the Building and Construction Industry Security of Payment Act 1999 NSW"
- and worth noting I have never had a problem with late payment on any invoice on any commercial project.
Re 1st of the month - A goal! don't beat yourself up!
The principle is important:
- regular, so you don't rack up months not working much for a client (bad!)
- regular, so you never rack up very large bills that risk slow / non payment (worse!)
- regular, so your cashflow is as constant and smooth as possible (great!)
Excellent Andrew! I did enjoy this less regular but more in depth note.
Question - 1st of each month - if a weekend or public holiday, do you move to 2nd or 3rd? Or it’s 1st of month rain hail or shine?
Recommendation - debt collection through security of payment legislation. Up front fee rather small, if adjudicator finds in your favour (highly likely) then fee is assigned to the client. 100% success rate recovering entirety of unpaid invoices thus far. Alas I’ve had to use this 4 times in 5 years of business (but I tend to skip step 9 😬)
Hey Eddie, thanks for the feedback!
Oh man - sorry to hear you have had to implement this a handful of times -but that is great news for a 100% success rate - I have only had to go through this once.
I'll have to get up to date on Security of Payment - I should say:
- most of our work is residential (where the Security of Payment Act did not apply)
- most of our work is in NSW (the act is slightly different in each state)
- on our commercial NSW projects (few and far between) we do place at the bottom of each invoice:
"This is a payment claim made under the Building and Construction Industry Security of Payment Act 1999 NSW"
- and worth noting I have never had a problem with late payment on any invoice on any commercial project.
Re 1st of the month - A goal! don't beat yourself up!
The principle is important:
- regular, so you don't rack up months not working much for a client (bad!)
- regular, so you never rack up very large bills that risk slow / non payment (worse!)
- regular, so your cashflow is as constant and smooth as possible (great!)