Macrossans Lawyers Brisbane law firm

By Angela O’Hara

As the economy becomes tighter and different sectors come under pressure more businesses may fi nd that their
customers are fi nding it harder to pay their outstanding debts.

The best defence against the risks of providing credit are to:

• Review your terms and conditions of sale so they are suitable for your operation (i.e. include terms
  of payment such as provision for interest, collection and legal costs and retention of title clause until
  payment)
• Obtain director’s guarantees
• Handle your debtors promptly by acting early to make recoveries, as the longer a debt is left the less likely
  it is you will get paid. Businesses will benefi t by establishing proactive processes for recovering debts.

Firms, such as Macrossans Lawyers, offer cost-effective services to help businesses follow up debtors to recover
payments quickly as well as implement enforcement procedures when debtors fail to pay. These procedures may
include statutory letters of demand and assistance with court documents for undefended proceedings, bankruptcy
and winding up applications.

In the case of the building industry, the Building and Construction Industry Payments Act 2004 (BCIPA) provides businesses with rapid recovery and adjudication of progress claim payments. If a claimant has not received payment, their first step is to send the respondent a written payment claim. This initial claim must be carefully drafted and include all relevant issues, because points not raised cannot be considered at a later date by an adjudicator or a court.

Any likely resistance will affect how much detail is required in the claim, which should:

• Be addressed and delivered to the respondent specifi ed in the contract
• Identify the construction work or related goods and services to which the claim relates
• State the amount of the progress payment due
• Contain a paragraph that states: ‘This
  is a payment claim made under the
  Building and Construction Industry Payments Act 2004’.

Respondents can pay the claim in full or provide a payment schedule. However, if payment is only partly paid or
remains unpaid by the agreed due date, claimants can elect to proceed with an adjudication process or take the matter to court to recover the amount as a debt (if no payment schedule is provided). Legal advice should be sought to clarify
how any matter should be adjudicated or prosecuted.

For further information:

Debt recovery
Angela O’Hara
E This Email address is being protected from spam bots, you need JavaScript enabled to view it This email address is being protected from spam bots, you need Javascript enabled to view it
T (07) 3292 9742.

BCIPA