The construction industry is a large and dynamic field, accounting for 5.7 per cent of Australia’s GDP, according to the HIA Window into Housing. The industry, however, is also ranked second for insolvencies, according to March 2017 ASIC insolvency statistics, and represents 16.72 per cent of Australian business insolvencies.

Causes of insolvencies are varied. A 2015 report by the Senate Economics References Committee noted that “Inadequate cash flow or high cash use, poor strategic management of the business and poor financial control, including a lack of record-keeping, accounted for the highest number of business failures.” The list of causes…