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Safeguarding Tradies: Navigating PPSR Amidst the Rise in Building Company Insolvencies



The construction industry is no stranger to economic fluctuations, and the recent surge in building company insolvencies has put tradies at increased risk.  When building companies go into administration or liquidation, they often struggle to meet their financial obligations, leading to delayed or non-payment for services rendered.  Unfortunately, tradies, as subcontractors or suppliers, are often at the bottom of the payment chain, making it challenging to recover the money owed to them.

PPSR: A Shield Against Insolvency Risks

The Personal Property Securities Register (PPSR) provides tradies with a powerful tool to protect their interests in these uncertain times.  By registering their security interests on the PPSR, tradies can receive a higher priority for asset recovery and payment compared to unregistered creditors in cases of insolvency or disputes.

Improved Cash Flow Management

Late or non-payment for services can severely impact a tradie’s cash flow, making it challenging to cover operational expenses and invest in business growth. PPSR provides tradies with a mechanism to secure their payments.  By registering a security interest against the debtor’s personal property, tradies can significantly increase the likelihood of receiving timely payments.

Best Practices for Tradies in Utilising PPSR

Timely Registration: As soon as a tradie enters into a contract for work without payment of a deposit or where goods are supplied on credit, they should prioritise taking out a registration on the PPSR.  Prompt registration ensures that the tradie receives priority over later registered security interests.

Comprehensive Searches: Before entering into any agreements with building companies, tradies should conduct PPSR searches to check for existing security interests against their potential clients. This search allows them to assess the financial stability of the company and make informed decisions about accepting projects.

Regular Review and Renewal: PPSR registrations have limited durations. To maintain continuous protection, tradies should regularly review and renew their registrations, especially for long-term projects that extend beyond the initial registration period.


The recent rise in building company insolvencies has underscored the importance of safeguarding tradies’ interests and assets. By leveraging the Personal Property Securities Register (PPSR), tradies can protect themselves against the risks associated with non-payment and insolvencies. Registering assets on PPSR and conducting thorough searches before entering agreements will empower tradies to make informed decisions, secure their payments, and establish a reputation for reliability and professionalism in the construction industry.  Embracing PPSR is a proactive step towards building a resilient and successful trade business in an ever-changing market.  Contact The Small Business Lawyer today for assistance with PPSR searches and registration.


More info on

Standard Search

Title Search

If there is a material defect, the buyer can claim compensation or terminate the contract any time prior to settlement

Registered Plan

If there is a material defect, the buyer can claim compensation or terminate the contract any time prior to settlement.

Land Tax

Allows for adjustment at settlement in accordance with the contract and termination if not paid on or before settlement. 

Full Rates Search

Allows for adjustment at settlement in accordance with the contract.

Special Water Meter Reading

Allows for adjustment at settlement in accordance with the contract.

Online Search for Tree Orders

If there is a tree application or order for the property and it has not been disclosed by the seller prior to signing the contract, the buyer can exercise their rights to terminate at any time prior to settlement.

Pool Safety Register

The seller is obligated to provide a current Pool Safety Certificate to the buyer prior to settlement. If the seller does not and will not be obtaining a current Pool Safety Certificate, a Notice of No Pool Safety Certificate must be given prior to contract signing. Failure to do so is a breach of an essential term and allows the buyer has the right to claim compensation and terminate the contract.

Dial Before You Dig

If encumbrances appear on the searches that are not disclosed in the contract, the buyer can exercise their rights to claim compensation and/or terminate the contract if they can prove said encumbrances materially affect their use of the land.

ASIC Company Search

No rights to terminate or claim compensation.

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