Cash is King!
- Anthony Simpson
- Dec 3, 2025
- 2 min read
The saying “cash is king” may no longer ring true in this day and age, but around the construction and infrastructure industry, cashflow is still very much the king. Delayed or even unpaid invoices have the potential to inflate costs, prolong, or even derail projects, with an unreliable source of funds the last thing anyone in the industry wants.
Beneath the surface, cashflow problems can lead to operational disruptions, with contractors often left without sufficient funding to cover upfront costs for labour, supplies, and resources. Security of Payment Act (SOPA) laws also mean that interest can be claimed on delayed payments, leading to exponentially higher project costs.
The avalanche of potential issues in project delivery schedules and project costs can strain business relationships at all levels of the supply chain, and has potential to sabotage future opportunities too. With ASIC reporting over 3000 insolvencies last year in the construction sector (which works out to be something in the order of 0.67% of our industry nationwide. That might seem like a small number until it’s your business looking like adding to the statistic…), the importance of steady and reliable cashflow is evident. The Heran Group’s Midwater at Main Beach Gold Coast Tower project demonstrates the impacts cashflow and payment delays can have on subcontractors and project execution, with Tomkins forced to terminate its contract last year due to unpaid invoices and delayed payments.
Don’t let late payments bulldoze your business. As a team of legally trained, commercial specialists, The Bench helps businesses understand their rights and set up for contract success, by protecting cashflow and properly balancing risk and reward. Our team provide support in procurement, contract negotiation and management, risk, claims and disputes, all without charging the arm and a leg that big law firms do.
Whether you’re trying to keep on the front foot, or concerned about current project cashflow, we’re here to lend an ear and a helping hand or two. All you have to do is ask (nicely).
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