Recent construction industry insolvencies
Many businesses in the construction industry have operated by supplying goods on retention of title arrangements and long term hire arrangements. Until the PPSR began on 30 January 2012, long hires were not required to be registered as a security interest.
In the last five or so years hundreds of construction companies have gone into liquation, leaving over 20,000 unsecured creditors out of pocket. The construction industry has been one of the hardest hit by the recent economic downturn with a large number of suppliers and subcontractors unaware of the implications of not securing an interest on the new PPSR.
If you are a business owner operating in the construction and building industries you should be reviewing your credit and risk management practices to ensure that your securities are protected under the PPSA.
Need further help to ensure protection under the PPSR?
To ensure that all secured interests are protected under the PPSA business owners should look to reviewing their current arrangements. If your business needs verification that all secured interests are protected please call Dooley & Associates for further details.Back