New CreditorWatch guide helps subcontractors and suppliers stay afloat in volatile construction sector

With the construction sector continuing to experience some of the highest rates of insolvency and delayed payments across all industries, leading credit reporting agency, CreditorWatch, have launched a free, practical guide to help subcontractors and suppliers reduce their exposure to credit risk and get paid faster.

Titled ‘Build Smart: A guide to managing credit risk for subcontractors & suppliers’ the guide outlines actionable steps businesses can take to protect themselves from non-payment, improve cash flow and avoid financial loss when working with builders and developers.

CreditorWatch data shows that construction businesses are some of the worst performers nationally across several critical indicators of business stress, including insolvency rates, payment defaults and overdue tax debts. The sector’s business closure rate remains well above the national average, sitting at 5.75% as of June 2025.

CreditorWatch CEO Patrick Coghlan said, “In the construction industry, subcontractors and suppliers are too often left holding the bag when a builder runs into financial trouble. This guide is designed to give these businesses the tools to identify red flags early, enforce stronger terms and build greater resilience into their operations.”

The guide includes strategies across five key stages:

• Onboarding: How to vet builders and developers before taking on a job.
• Monitoring: Why staying alert to changing credit conditions is critical.
• Collections: Tools to chase payments professionally and reduce delays.
• Reputation: Managing your own credit file to win more work.
• Insolvency response: Steps to take if a builder enters voluntary administration.

The guide also outlines how to use tools like CreditorWatch’s RiskScore, PPSR integration, and payment defaults reporting to avoid costly mistakes and make smarter credit decisions.

“The construction sector is high-risk by nature, but credit risk doesn’t have to be a blind spot,” said Coghlan. “By taking a proactive approach to onboarding, monitoring, and collections, subcontractors and suppliers can significantly reduce their vulnerability and improve their bottom line.”

The “Build Smart” guide is available now for free download at: www.creditorwatch.biz/4lNCN1G