Subcontractor and Not Been Paid?
If you are a subcontractor and not been paid then this can be a serious headache. It is unfortunately common for a contractor to fail to pay a subcontractor within the agreed terms.
If so, the subcontracting party is entitled to pursue debt collection action to recover what is owed to them.
It is usually building projects and maintenance jobs that involve subcontractors within industries such as Electricians, Plumbers, Bricklayers and Joiners. There is also a rich array of other supporting subcontracting roles such as Plasterers, Carpenters, Floor Tilers and so on.
Usually, the main contractor is responsible for all ‘on-the-job’ chores and tasks. These will be tasks such as organising, instructing and supervising all the subcontractors that are involved with the project.
The main contractor has many key responsibilities. One is to ensure that all suppliers and subcontractors are paid for the services or goods supplied.
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When the subcontractor does not get paid then they have grounds to pursue the contractor for monies owed. This could be in the form of wages or unpaid invoices for services rendered.
In the USA, the owner of the property can be held liable for payment under a “Mechanics Lien”. This, unfortunately, is not the case in the UK where the nature of the construction industry is different. If a client refuses to pay then alternative solutions need to be looked at.
There are various construction lien options available to subcontractors. However, for legal advice, a specialist contract lawyer is always the best port of call for this scenario. This is usually prior to the start of any proposed subcontract work. Looking through the terms and conditions of any proposal is always advisable.
Following the expiry of the normal requested terms for payment, a subcontractor that has not been paid must take swift action.
It is well known that the ‘last payment’ is often not made by the main contractor. Sometimes limited companies are formed specifically for one particular project so a swift debt collection action is needed.
If you are a subcontractor and not been paid, take action. Whether you are a self-employed contractor or a small business, you deserve to be paid for the services you have provided.