Commercial

The Sub-Contractor Scam: “Certified Fraud” as the Phoenix Rises

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8 months ago Tradie Exchange

If you walk around any construction site across the country, it’s immediately apparent that sub-contractors are the backbone of Australia’s building and construction industry. They enter into contracts, do the work and have a fundamental legal right to be paid.

But in this industry, all small business owners are routinely subjected to lead contractors refusing to pay, the unpaid debt now totalling $20 billion annually! By its very definition this is fraudulent. Under Australian law it’s definitively illegal. And it’s also criminal.

Small business is the ‘construction industry’!

Sub-contractors are small business, and by far the largest employers of Australian workers. Consider the construction industry, worth a staggering $300 billion-plus annually and wholly reliant on some 350,000 small to medium size sub-contractor businesses. Those contractors undertake 85 per cent of all construction work.

Although flippantly referred to as ‘subbies’, many of these businesses are sizable enterprises employing 20 to 30 workers. It is these businesses, and not the lead contractors, who are the major industry employers.

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Writer Credit: Anne Paten, Building Consumer Advocate

The Sub-Contractor Scam: ‘Certified Fraud’

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