Before signing on the dotted line, make sure you check when you are to be paid under the contract.
We reviewed a Labour Hire Agreement which excluded the contractor’s rights to progress payments. The agreement (from a large mining corporation) stated that payment was to be made at the end of the term… which was 2 years after the contract date!
This would have meant our contractor client still would have had to pay his employees fortnightly which could have resulted in serious cash flow problems and potential bankruptcy. Our client requested an immediate amendment to the contract.
Don’t take the risk and act as a free overdraft facility – protect yourself by having your contracts reviewed and get the right advice to ensure you have the ability to progress payments and to suspend work if you are not paid on time.
For more information call us on 1800 922 609
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