Subcontractors in the Australian construction industry frequently face a range of payment and contract-related issues when working with large builders.
Here are some common issues that subcontractors have experienced:
Example: A subcontractor completes work for a principal contractor but is repeatedly told that payment is “in processing” or “awaiting approval” for months beyond the agreed terms.
Example: A subcontractor receives partial payment for a job but notices a shortfall in the final amount. When questioned, the builder claims “adjustments were made” without prior discussion, effectively short-paying the subcontractor without explanation or justification.
Example: A subcontractor is charged for defects or delays caused by another trade or poor project management, despite fulfilling their scope of work correctly.
Example: A builder deducts an arbitrary amount from a subcontractor’s final payment, citing “site clean-up” costs, even though no agreement existed for such charges.
Example: A builder holds back part of a subcontractor’s retention money without valid justification, citing “contingency for future defects” long after the work was completed.
Example: A subcontractor submits a progress claim, but the builder offsets a percentage of the claim against alleged additional site costs that were never agreed upon.
Example: A builder delays site access for weeks, but later penalises the subcontractor for project delays with liquidated damages, despite the delay being beyond the subcontractor’s control.
Example: A subcontractor is removed from a project without proper notice, with the builder withholding final payments citing alleged “poor performance,” even though work was completed to standard.
Why Speak Up?
In the construction industry, larger companies often have a significant advantage when dealing with subcontractors, using their financial power and legal resources to strong-arm smaller businesses into accepting unfair payment terms, deductions, or setoffs. Many subcontractors feel pressured to accept these terms out of fear of losing future work or damaging relationships with big builders.
These practices can severely impact businesses, workers, and livelihoods, creating an environment where smaller contractors are left to carry the financial burden of delays, disputes, and withheld payments. By sharing your experience, you can help expose these unfair tactics and push for greater accountability and transparency in the industry.
We are actively working with contractors to provide support around Security of Payment Act (SOPA) claims and are also investigating potential class action options. If you believe you have been unfairly treated, now is the time to come forward.
Your information will be treated with the utmost confidentiality.

It’s Time to Fight Back
For too long, big builders have used their power to delay payments, enforce unfair deductions, and leave subcontractors carrying the financial burden. Enough is enough.
By standing together, we can expose these tactics, demand accountability, and push for fair treatment in the industry. Your voice matters—don’t stay silent.