Should trades team up after the same builder collapses?

Why a lone trade gets overlooked

When one subcontractor chases a collapsed builder alone, the file is easy to ignore. When several trades compare notes, the debt starts to look bigger, the meeting room gets busier, and the liquidator has to deal with a real bloc of creditors rather than separate callers. The Corporations Act lets creditors act together in several ways, including appointing a committee member as a group. ([legislation.gov.au](https://www.legislation.gov.au/C2004A00818/2025-12-05/2025-12-05/text/original/epub/OEBPS/document_7/document_7.html?utm_source=openai))

That matters because votes in external administration are not only about being right, they are about being counted. ASIC explains that a proxy lets someone else represent a creditor and vote on their behalf. If your claim is small by itself, teaming up can help you spend less time and money getting heard. ([asic.gov.au](https://asic.gov.au/regulatory-resources/insolvency/insolvency-for-creditors/voluntary-administration-a-guide-for-creditors/?utm_source=openai))

Start with the other trades

First, contact the other trades from the same project and compare the basics. Who has invoices, who has lodged a proof of debt, who received the meeting notice, and how much is actually admitted? A clean list makes it easier to see whether the group has enough value to act together and whether one voice should carry the room. ([legislation.gov.au](https://www.legislation.gov.au/C2004A00818/2025-12-05/2025-12-05/text/original/epub/OEBPS/document_7/document_7.html?utm_source=openai))

Keep the conversation practical. Use the same project name, the same company name for the failed builder, and the same payment figures across the group. That avoids the common problem where three trades tell three different stories and weaken each other’s leverage. A shared spreadsheet and one folder of documents is usually enough to start. ([asic.gov.au](https://asic.gov.au/regulatory-resources/insolvency/insolvency-for-creditors/voluntary-administration-a-guide-for-creditors/?utm_source=openai))

Source: Official guidance

Choose one person to front the group

Then agree on one coordinator or representative. The point is not to hand over control, but to stop the liquidator hearing five versions of the same grievance. One person can chase meeting notices, collect signatures, and relay updates. ASIC notes that a corporate creditor must nominate an individual to act for it at the meeting. ([asic.gov.au](https://asic.gov.au/regulatory-resources/insolvency/insolvency-for-creditors/voluntary-administration-a-guide-for-creditors/?utm_source=openai))

If a committee of inspection is formed, the regulations also limit a creditor to one representative on that committee. That makes early alignment useful. Decide now who speaks for the group, who supplies documents, and who can attend in person if the meeting runs long or the chair wants questions answered quickly. ([legislation.gov.au](https://www.legislation.gov.au/C2004A00818/2025-12-05/2025-12-05/text/original/epub/OEBPS/document_7/document_7.html?utm_source=openai))

Pool the proxy forms early

Before the creditors' meeting, pool the proxy forms so the votes land the way the group intended. A proxy is simply a person appointed to speak and vote for a creditor. If each trade lodges a different form, the bloc can split by accident. Check names, ABNs and claim amounts carefully before submission. ([asic.gov.au](https://asic.gov.au/regulatory-resources/insolvency/insolvency-for-creditors/voluntary-administration-a-guide-for-creditors/?utm_source=openai))

This is where small errors become expensive. A missing signature, the wrong creditor name, or an outdated contact can leave a form unusable just when the numbers matter most. Keep the signed forms together, label them clearly, and make sure the chosen proxy understands whether they are voting on the resolution or only on specific items. ([asic.gov.au](https://asic.gov.au/regulatory-resources/insolvency/insolvency-for-creditors/voluntary-administration-a-guide-for-creditors/?utm_source=openai))

Use the committee seat well

If the meeting leads to a committee of inspection, use it. The Corporations Act says creditors by resolution, or a creditor or group owed a large amount, may appoint a member. That committee is there to monitor the administration and assist the external administrator, so it can be a useful place to press for answers and discipline. ([legislation.gov.au](https://www.legislation.gov.au/C2004A00818/2025-12-05/2025-12-05/text/original/epub/OEBPS/document_7/document_7.html?utm_source=openai))

The practical next step is simple: call the other trades today, name one coordinator, gather the proxy papers, and decide whether one of you should be put forward for the committee. If you want help organising the creditor management side, call CRP today. CRP coordinates independent qualified professionals. This is general information only. ([legislation.gov.au](https://www.legislation.gov.au/C2004A00818/2025-12-05/2025-12-05/text/original/epub/OEBPS/document_7/document_7.html?utm_source=openai))