As corporations collapse under the pressure of economic downturn, smaller contractors are finding themselves out of pocket for completed work. In 2015, debt insolvencies reached $3 billion in the construction industry, mostly due to poor management and lack of cash flow. Due to the highly competitive nature of the industry, jobs often get underbid to win work. This toxic culture is not conducive for large companies to make money and ultimately is detrimental to subcontractors who must pay the price with their unpaid labour.

While current laws fail to protect payments in the event of insolvency, there is some hope that new legislation after the upcoming state election may change these practices.

Find out more here.