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Unpaid tradesmen

I've known for many years, and written about often, the extraordinary injustice of banks selling subcontractors' unpaid work and materials to help pay the bank's unpaid debt. This happens many times a day in Australia, and that the Federal Labor Government has not put an end to it is testimony to the influence of big business.

But I was not aware of the vulnerability of tradesmen to householders and other small clients who simply refuse to pay. As I explain in my column in The Herald today this new awareness came about after I learnt over a week or so that a bricklayer/paver working at my home refused to employ anyone. He'd been left paying wages too often, he told me, when he'd not been paid himself. On top of that, of course, he'd be stuck with the cost of the materials. Nor will he work for builders, because it is too great a gamble.

Later a mate who's a self-employed plumber told me debts could be a problem, and on Monday he walked away from a job after working for two hours because the client was boasting about not paying other tradesmen! He tells me that the most unreliable payers are teachers and especially young female teachers, miners and especially young open-cut miners, and restaurateurs.

I phoned a relative who cited chronic refusal to pay as a reason when he took his plumbing business from Newcastle to a country town a couple of decades ago. Pensioners, then, were a problem, he told me, too often disclosing at the end of the job that they didn't have the money to pay! The risk is not so great in the country, my relative said, because tradesmen in the smaller pool knew who hadn't paid and were reluctant to work for these people. Sometimes, he told me, people paid for the previous work only when they needed another job done, and his practice in that case was to accept the money, of course, then refuse to do the new job.

The consensus is that the courts offer little protection for tradesmen. It costs considerable time and money to get the non-payer there. Often the non-payer is skilled in obfuscation and delaying, and a typical tactic after reaching a pay-by-instalment plan is to pay just one instalment, requiring the tradesman to return to court.

I cannot understand how any Australian can reach an agreement with a tradesman, watch as the fellow fulfills his side of that agreement, claim and enjoy the results of that work, then refuse to pay. Can you? What's been your experience as a tradesman or subcontractor? Are you a non-payer?

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Date: Newest first | Oldest first
after being in the building game as a tradesman for about 30 years i have found the worst people to work for are school teachers who hate to pay and always find some minor point to argue about. i know this sounds like a generilisation but in my experience it is true. second on the list are people with plenty of money, the "we have worked hard and we deserve better" brigade.i would like a dollar for every time i have heard that line when poor doodems is showing you the single hair in the skirting board paint behind the door in bedroom 6. i blame those ridiculous lifestyle shows like backyard blitz that rebuild an entire home in 20mins for $9.50. stupid people think that this is what the real world is like and expect tradesmen to do 8 hrs work before smoko for 1 hrs pay.
Posted by catl, 11/03/2010 9:38:48 AM, on The Herald
there's an idea for a column for you Jeff. Why is it that teachers have such a poor reputation among retailers and service providers? When I was in retail I avoided them as much as I could. You could tell almost immediately when they were teachers. I think it must have something to do with wanting to be in control as they are in the classroom. Another anomaly is that math teacher are the worst of a bad lot. Ask around and you'll find many people absolutely hate dealing with teachers. Is their a character flaw that's common to the profession?
Posted by Brando, 11/03/2010 9:54:20 AM, on The Herald
That is the case, Brando. A family I know who had a furniture/curtains/carpet store for generations refused to deal with teachers. Too often they'd cut and install, say, curtains only to find that the teacher wouldn't pay because she didn't like the colour or some such. They were very good at picking teachers, too.
Posted by Jeff Corbett on 11/03/2010 10:15:21 AM
On the other side of the coin Jeff, are the shoddy tradesmen who do a shoddy job, rip the people off and disappear. Prime examples are always found after a natural disaster such Newcastle earthquake, and hail battered roofs in Sydney a few years ago. There are shonky people on both sides of the debate.
Posted by MizJasper, 11/03/2010 9:57:37 AM, on The Herald
Jeff - there are many people out there who will (in a most un-Australian way) rip others off by not paying. It happens to every small, medium and large business, every day. Unfortunately, self employed tradespeople or small businesses are most at risk, because a few bad debts can send them to the wall. These traders simply have to become VERY focused and protective of their cash flow, invoicing and collection policies, and be very clear and up front with customers. For example (in a previous business), I had to insist on payment for goods delivered to a customer's home before they were unloaded from the truck. I let the customers know in advance that this was the policy. If they didn't like it (some didnt), they could buy elsewhere. That way, it was only the labour content of a job that was at risk, and I had a very clear indication of whether the job was going to proceed. If they didn't have the cheque ready, the goods weren't unloaded, and our risk was eliminated. Once the goods are dlievered, you can't legally just take them back. Unfortunate but true. So many small business people are afraid to invoice and collect. Big mistake. Invoicing is job #1.
Posted by Abundance, 11/03/2010 10:06:18 AM, on The Herald
I think it is a generalisation to put teachers into bad payers. But maybe they take alittle more time to mature, going from twelve years of school to four years of university and then back to school might not be hitting the real world running. But who would do their job, I could not deal with high school brats all day. Back to the topic, tradsmen are generally good guys. They are trained for four years by men, and usually get a good sense of right from wrong. Not alot of PC on a building site.
Posted by Buell, 11/03/2010 10:24:30 AM, on The Herald
As a worker in the building construction game for many years, many hi-rise and other major construction projects as well as construction in the mining sector. I have often been left without pay. Some of the people who employed me had no intention of paying up. The union at times joined in and we got what was oweing, but all too often when chasing the company for your money, the company will often simply fold and then re- emerge under another banner. A few of my mates have been roofers and have had a few problems with non paying private customers. The laws don't seem to be set up the right way to allow you to get what is owed. As for teachers not paying?... maybe they all have a stick up their arse and think they're better than a mere tradie. They probably have issues with the fact that someone who is working for them is getting more money per hour.
Posted by suzhousid, 11/03/2010 10:36:47 AM, on The Herald
heh heh - teacher bashing - one of my favourite subjects. looking forward to reviewing the other posts at the end of the day. I wouldn't want to look after the little turds either, but a 9 to 3 job, with 6 months off each year (I am including strikes in there) should adequately compensate! Cue the standard "Marking and planning" BS ("I mark assignments till 2.00am!") OH POPPYCOCK YOU DO! And now i find out you don't pay for building work - CLASSIC!
Posted by Jaded, 11/03/2010 10:40:13 AM, on The Herald
"but a 9 to 3 job, with 6 months off each year" - ha ha ha ha ha ha! I'll swap you jobs for 12 months - and I promise I'll come visit you in the psychiatric ward in my holidays.
Posted by zuluclayman, 11/03/2010 11:13:05 AM, on The Herald
only half an hour for someone to take the bait - thank you zuluclayman. And no, you can keep the job - I'd only be a teacher if it were Victorian times. Kids have "rights" now - backchatting little bersterds. Mr Gormsby is the only kind of teacher I would be. you can try my job - 8am to 6pm, earn less than a teacher, and 4 weeks holds. sorry, no stress leave available though.
Posted by Jaded, 11/03/2010 11:29:21 AM, on The Herald
5 weeks +2 weeks +2 weeks +2 weeks does not equate to anything close to six months Jaded... damn, something else you can now blame a teacher for. Hopefully skills in mathematics aren't needed in your profession. What is it again? Oh right, you left that part out.
Posted by dothemaths, 11/03/2010 11:43:34 AM, on The Herald
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Jeff Corbett
Bend the online ear of the Hunter's most provocative columnist.

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