Construction Debt Recovery

The construction industry is reliant upon full and timely payment for goods/services provided to ensure that funds can properly be circulated around the industry (i.e. ensuring builders can pay their workers and suppliers). This need is shown through the existence of the Building Industry Fairness (Security of Payment) Act 2017 (BIFA), which provides for the security of payment in the building and construction industry by providing for effective, efficient, and fair processes for securing payment. When payment is not received a debt is incurred for which the owed party would need to engage in building and construction debt recovery processes in order to recover this money.


What is debt recovery in law?

Debt recovery is the process of retrieving money that is owed to a person/company (creditor) by an owing person/company (debtor).


What legal action for non payment of invoices can be taken?

A major question that we receive is how to recover debt? The debt collection process enables a few different avenue to recover unpaid funds. Most commonly debt is recovered in the construction industry through engaging in the following:

  • Making a BIFA payment claim;
  • Issuing a BIFA subcontractor’s charge;
  • Issuing a creditor’s statutory demand; or
  • Commencing legal action for breach of contract.


Common questions asked regarding debt collection construction industry


So when can a debt be turned over to collections?

Debt collection takes place when creditors and collectors seek payment from consumers or businesses who are legally bound to pay or repay money they owe.


Can you dispute a debt if it was sold to a collection agency?

If you are contacted about a debt you do not owe, or disagree with the amount being claimed, you have a right to dispute it.


RCR Lawyers offer unmatched construction and debt recovery knowledge. We are able to effectively advice on the best ways for you to seek recovery for owed money. Alternatively, we are able to provide you with detailed advice regarding your rights and obligations if money is sought from you as a debt.

For assistance with any step in the debt recovery process please contact us.



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Construction Debt Recovery

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