The Telecommunications Users Association says a problem with payments to subcontractors could worsen a shortage of skilled workers available for the Government's ultrafast-broadband rollout.
Transfield Services, an Australian company which is responsible for 40% of the rollout, announced on Friday it will pay all its New Zealand subcontractors in the next two working days.
Some subcontractors have not been paid since July.
Telecommunications Users Association chief executive Paul Brislen said New Zealand is already competing with Australia for such staff.
He said an increase in the skills shortage could be a disaster in the middle of the rollout.
One contractor who was owed more than $600,000 said the money was in his account when he checked it on Saturday morning.
He said he's still owed more than $800,000 for work done in August, but Transfield has until the end of the month to pay that.
Another contractor said he had also received payment for July work, but that was too late for eight full time employees he made redundant.
Employers, Printers & Manufacturers Union organiser Joe Gallagher said he's confident Transfield won't make the same mistake again.
He said the payments mean subcontractors can resume business as normal.
A Transfield spokesperson would not discuss the cause of the payment glitch, but did say the company was sound financially and maintains a positive cashflow.
