How can a tradie avoid non-payment?

One of the most common issued faced by tradies is non-payment for building work. But how can tradies prevent non-payment, whilst still maintaining a positive relationship with the owner?

1. Have a contract in place

Having a contract in place is essential (and in most cases mandatory) for tradies. Having a lawyer ensure all terms and conditions within the contract are crystal clear and legally binding is helpful in avoiding non-payment. A lawyer can also ensure that both the tradie and the home owner understand the contents of the contract, making sure everyone is on the same page – particularly in relation to payment.

2. Make a payment plan

Ensuring you have a payment plan is another helpful method to avoid non-payment. In NSW, tradies can require 10% up-front deposits, progress payments that are payable upon work commencing, and a final ‘work completed payment.’ It is always best to ask a lawyer how you can legally and efficiently manage payment plans within contracts.

3. Add interest for late payment

Tradies can choose to charge interest on late payment, which can encourage home owners to pay on time and avoid non-payment. If not managed appropriately, however, interest and late fees can be tricky. It is best practice to ensure you have a lawyer on your side when dealing with late payment fees. 

4. Follow up

As a tradie, ensure you are invoicing in a prompt and timely manner. If you are still awaiting payment after a reasonable amount of time has passed, politely follow-up with clients. They may have simply forgotten, or just needed that extra reminder.  

In the case that these preventative steps fail, Glissan & Associates are able to help you with non-paying home owners. Contact us today to learn more.