Episode 14 - How Builders DEED Away Their Debt

This week on The Subbies Toolbox Podcast, I'm unpacking one of the most frustrating situations subcontractors face in commercial construction.

What happens when a builder tells you they can't pay?

More importantly, what happens when they offer you a deal instead?

After a recent conversation with excavation contractor Jimmy Starbuck, I found myself reflecting on a story that will sound familiar to many Aussie subbies. A developer convinced multiple subcontractors and suppliers to keep working despite not being paid, relying on the promise that everyone would get looked after at the end.

It raises an important question.

When a builder says they're going broke, should you believe them?

In this episode, I explain how deeds of release are commonly used to settle debts, the warning signs subcontractors should be watching for, and why relying on the insolvency system as your safety net is rarely a winning strategy.

We also talk about trade credit insurance, accounts receivable escalation procedures, and how to position yourself so you're making decisions from a place of strength instead of fear.

In this episode:

What a deed of release actually does

Why builders use debt settlement deals

The psychology behind "I'll go broke if you push me"