MBA ACT encourages all Members to ensure that you are making payments in accordance with your contract when they fall due. In the last week, the IR & Legal team have received a number of calls in relation to delayed and/or disputed payments as well as receiving a number of SOPA and debt recovery queries.
I am owed a payment – what can I do?
Firstly, try to speak to the other side to ascertain when payment is likely to be made. Depending on the outcome of your conversation, you might receive payment, you may be able to charge interest on the late payment or you may need to seek advice on what you can do to recover the monies owed to you.
I need to pay an account but cannot do so until next week. Am I liable for interest?
Potentially, but it will ultimately depend on the terms and conditions of your agreement with the other party.
MBA ACT recommends that where payment cannot be made, that you reach out to the other party to come to an alternative arrangement. A person/entity who is owed money for works completed, might seek advice and/or commence action for the recovery of the monies, particularly if there has been no communication or commitment to pay.
There are also mandatory reporting obligations for delayed or disputed payments under the 2016 Building Code. For further information about the mandatory reporting requirements under the Code, click here. Click here to complete the online reporting form.