Tradies can extract payment for finished jobs easier under new laws

From March 1, it will be easier for tradies to extract payments when the job is done. But there are concerns homeowners will be forced to pay for “bad building work”.

Jessica Ausburn sat in a restaurant breastfeeding until the owners paid for the concreting work her husband completed one year before.

But the mother of two said she hopes she will no longer have to resort to such extreme measures to ensure companies and individuals pay tradies for their finished work.

From March 1, homeowners will find it much harder to withhold payment to tradies when the job is done.

The changes will have huge implications — not only for minor handyman jobs — but also for the tens of thousands of homeowners carrying out more than $4.5 billion in renovations in NSW every year.

But consumer groups fear the laws will force homeowners to pay for defective work.

“Some people just do not want to pay their bills and think if they ghost us we will just go away,” Mrs Ausburn, director of the Central Coast’s Diagrind concrete polishing company, said.

“People did not expect someone to be sitting there in a restaurant breastfeeding completely uncovered.

“I tell lots of tradie’s wives to do the same.”

Concrete company Diagrind director Jessica Ausburn with husband Matthew and children Marco, 5, and Brooklyn, 3.

Previously tradies were forced to take owners to the NSW Civil and Administrative Tribunal to chase payment.

But now if homeowners don’t provide a payment schedule within 10 business days of receiving a Security of Payments Act invoice they must pay the whole amount.

The cash has to come through even if the builder’s work is defective or the builder has invoiced for more than the builder is entitled to.

It will be easier for tradies to get paid for jobs done under new laws. Picture: Andrew Henshaw

“Under the new terms of the act, the adjudication process takes about 5-6 weeks and any amount found to be owing to the contractor must be paid within five business days,” Anthony Igra from Contractors Debt Recovery said.

“Timings and procedures under the act cannot be delayed, postponed, extended, or adjourned — there will be no escape for any homeowner who doesn’t pay.

“With few exceptions, your contractor is not out to rip you off, do a poor job, or hurt you. So don’t use these problems as excuses not to pay for the work.”

But Owners Corporation Network executive officer Karen Stiles remains concerned that “after March 1 homeowners will be forced to pay for bad building work”.