Subcontractor and not been paid?
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.
Are You A Subcontractor And Not Been Paid?
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.
When Can Contractors Withhold Payment From Subcontractors?
The main contractor is able to withhold payment if the work or goods supplied by a subcontractor are deemed unsuitable. Evidence of this should always be provided along with the option to rectify any shortcomings.
Quite often there is an agreement in place along with any retainers for subcontracting work provided. It is always advisable to read and sub-contract agreements thoroughly, as well as any associated payment terms. This will avoid confusion and possible disputes once the subcontract work has been completed. The contract should also include any penalties etc for delays in completion.
A dodgy main contractor or managing director can always find a spurious way to avoid paying their subcontractors. It pays to do your homework on any prospective contract work you are considering doing to avoid this scenario.
Subcontractor And Not Been Paid? Instruct a Debt Collection Agency
If you are reading this then it is likely you are a subcontractor that has not been paid for work done. Do not lose patience, you are not the only subcontractor that has not been paid on time.
Getting payment is probably essential to your financial well being and often mental well being. Being owed money is one of the most frustrating aspects of being a subcontractor or small business owner. If you have worked on construction projects, construction contracts and have not been paid, it can be challenging.
Are you suffering as a subcontractor that has not been paid? If so, speak to our friendly collections experts today for immediate advice and assistance.
Our consultations are free of charge and we can provide a realistic appraisal of the situation. Following this, they provide possible business debt collection solutions.
It is imperative you do take action to collect what is owed to you. As an FCA Regulated Debt Collection Agency, we conduct all dealings with the debtor in a professional manner.
Time is of the essence when owed money as a subcontractor. Don’t delay, contact us now for free expert debt recovery advice and assistance.