Are you a tradie waiting on getting paid? Read on.

Are you a tradie waiting on getting paid? Read on.

If you are in the trades and don’t have a good set of standard set of Terms & Conditions (T&C’s) which you use for your customers, then you should read on.

A well drafted set of T&C’s that is customised for your business and industry should clearly establish the rights and obligations of the parties. By extension, it should also lessen the risk of your business not getting paid, as well as reducing the likelihood of future disputes arising in relation to the agreed terms of the sale and any ‘mission-creep’ such as that extra little job ‘just while you’re here’. Think of a well drafted set of T&C’s as an up-front insurance policy. 

On occasion we have businesses who come to us seeking to enforce a debt or hold a customer’s goods as security for an unpaid debt, only to find that they either don’t have a set of T&C’s or that the ones that they do have are deficient and/or out-of-date. Under those circumstances recovery can be made all the more harder as a result and may lead to the other side being able to obtain a compromise settlement rather than having to pay their debt in full, which is less than ideal and regularly leads to a greater loss than what a good set of T&C’s would have cost in the first place. 

We recommend that as a starting point you ought to ask yourself these simple questions:

  1. Do you have a solid set of T&C’s?
  2. Do your T&C’s allow you to charge interest?
  3. Do your T&C’s allow you to recover costs and charges associated with recovery?
  4. Do your T&C’s allow you to hold a customer’s goods as a security for unpaid invoices?
  5. Do your T&C’s allow you to charge storage fees or penalties for contract breaches? 
  6. Do your T&C’s comply with recent changes in the Australian Consumer Law and Workplace Health and Safety legislation? 

If your answer includes a ‘no’ or you are not sure, then now may be the time to get in touch for a chat and if needs be, either get your T&C’s reviewed or get a set put in place. Remember, your next customer may be your next bad debt so putting off these types of ‘admin’ tasks can be costly down the track.

If you have read this far then we recommend that in the first instance you discuss your situation with us in our SmartMove initial 30-minute discounted consultation (which can be by phone), which we offer for $80 and which can be booked through our website or by simply getting in touch. Austral Legal. Practical advice.