Episode 18 - What Is In An Accounts Receivable Escalation Procedure (AREP)

Getting paid isn’t just about sending an invoice and chasing it when it’s overdue.

In this episode of The Subbies Toolbox Podcast, Michelle Cirson breaks down what should actually go into an Accounts Receivable Escalation Procedure (AREP), and how it should work alongside the Security of Payment laws in your state or territory.

From getting your payment claim right in the first place, through to payment schedules, second opportunity notices, adjudication and suspension, Michelle explains why the timing and order of each step matters.

Michelle also shares what happened when a Subbies Toolbox Member relied on AI for advice about a Security of Payment deadline, and why these processes aren’t always as straightforward as they look. Thankfully it was picked up before the subbie got too far down the track.

In this episode, you’ll learn:

• What an Accounts Receivable Escalation Procedure should cover

• Why your reference date and payment claim matter from day one

• Why getting a payment schedule from your builder can work in your favour

• How Security of Payment processes differ between states and territories

• Why Michelle recommends claiming everything completed less what has actually been paid into your bank account

• Why letters of demand and debt collectors usually aren’t Michelle’s first choice for construction debts

The point of an AREP isn’t to become more contractual with your builders. It’s to have a calm, consistent process already sitting there when payment goes sideways, so you know what happens next and don’t lose valuable rights while trying to work it out under pressure.