CREDITWORKS

There is a commercial relationship between BIF and CreditWorks.

The relationship was formed in response to an escalating bad debt problem faced by New Zealand’s building industry following an accumulation, in Auckland alone, for building and construction merchants amounting to more than $150 million. This relationship contributes to improving the financial soundness of the industry and indirectly provides the public with more financial surety when making building purchases.

Companies that are members of BIF receive a substantial discount from CreditWorks for use of the CRISworks system.

Does this relationship make it harder to get credit?
Building merchants and contributing users may intervene and withdraw or decline credit to customers (builders or subcontractors) with long term debt and delayed payments. CRISworks ensures greater transparency of companies with poor credit worthiness and ensures that responsible operators are not disadvantaged.

Who do I contact to find out more about CreditWorks or who do I call for help?
For further Information, please contact the CreditWorks team at the details below.

CreditWorks

PO Box 74 357
Market Road
Auckland

Ph: 09 307 3100
Fax: 09 373 5017
0508 CREDITWORKS or 0800 273 348
www.creditworks.co.nz

Who supplies the data to CreditWorks?

Only contributing users (suppliers and merchants) under license to CreditWorks provide data. CreditWorks has a reciprocal arrangement ensuring that access is limited to those who supply data only.

Does CreditWorks breach any privacy or commercial sensitivity?

CreditWorks fully complies with New Zealand privacy laws. The CRISworks database can only be accessed in respect of registered companies and these do not have privacy constraints such as those written into New Zealand law for individuals. By using security of access, only properly authorised access to CRIS is possible.

There are safeguards within the CreditWorks contract with each contributing user to ensure that there is no improper use of the information, such as the transfer to a third party.

What is CRISworks?

The “Credit Reference Industry Solution” (CRISworks) system is a joint initiative between BIF and CreditWorks Data Solutions. CRISworks allows building and construction companies that are providing their credit data (contributing users) to access a consolidated debt position of building companies (current to within 24 hours), at current, 30, 60, 90 and 120 day aging.

What is the difference between CRISworks and a credit rating?

CRISworks provides immediate access to up-to-date debtor data. This is commonly referred to as “Positive Data Credit Referencing”. Positive Data Credit Referencing is the actual account information from contributing users (e.g. building suppliers) including financial receivable detail. In contrast, a credit rating is a rating based on financial performance criteria.

How accurate is the CRISworks data?

Ernst & Young conduct checks every six months to validate the accuracy of the data matching, system processes and terms of trade agreements. Each contributing user is responsible for the accuracy of their data provided to the system.

What difference will CRISworks make to the building and construction industry?

The CRISworks system will provide a new measure of protection for builders and contractors who pay their bills promptly and will identify builders and contractors who do not. The key benefit to the New Zealand building industry will be the reduction of bad debt. It will also assist with identification of “Phoenix companies” (companies with the same directors, assets and often similar names who re-establish themselves before, or shortly after, the failure of an existing company).

Does the CRISworks system comply with the Commerce Act?

CreditWorks fully complies with the Commerce Act. The financial information displayed on CRISworks shows a consolidated view of debt, not pricing information.

What is the cost of using CRISworks?

Contributing users pay a license fee and a fee for each query made on the system as per their terms agreed with CreditWorks.

Why should contributing users provide full credit information and not just a credit rating?

To determine a credit rating, conclusions must be drawn. As a consequence, a credit rating may not be reliable without all the relevant information. CRISworks is not a credit rating system.

What safeguards are there for builders and contractors (subjects of the data)?

CRISworks can only be accessed and used by contributing users for credit risk assessments as per the agreed CreditWorks contract. CreditWorks does not have access to individual financial information of each of their respective data supplier. This is to ensure no organisations or individual can apply pressure on CreditWorks to provide information outside the agreed contractual obligations.

What if a builder or contractor (subject) disagrees with the information, and is denied credit from a contributing user?

Should a customer of a contributing user disagree or dispute the information, they will be directed in the first instance to their suppliers. CreditWorks will have a 0508 support line to handle any queries in the first instance.

What happens if the information in the CRISworks system is wrong?

The CRISworks database is a direct reflection of information received from data suppliers. If CreditWorks is made aware of any possible errors or incorrect data it will refer back to the data contributor for clarification and correction as necessary.

In addition, Ernst & Young’s bi-annual checks ensure that full data integrity is maintained.

Can information be data mined by contributing users?

If a contributing user is suspected of attempting to data mine, CreditWorks will enforce its obligations. This includes suspending the contributing user’s licence and taking other action in response to any breach of the law, including and not limited to, statute and common law.

How will the system know if someone is in dispute on an account (i.e. a genuine non payment is in dispute or being negotiated)?

The CRISworks system has a field on the report called Notifications where the contributing user can note the dispute.