Subcontractor and not been paid?
If you are a Subcontractor and not been paid then this can be a serious headache. When a contractor does not pay a subcontractor within the agreed terms then the subcontracting party is entitled to pursue Debt Collection action to recover what is owed to them.
Quite often. It is 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 organising, instructing and supervising all the subcontractors that are involved with the project. One of the key responsibilities of the Main Contractor is to ensure that all Suppliers and subcontractors are paid for the services or goods supplied.
When the Subcontractor does not get paid then they have grounds to pursue the Contractor for monies owed be it 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” however this unfortunately is not the case in the UK.
There are various construction lien options available to Subcontractors however a specialist contract lawyer is always the best port of call for this scenario, usually prior to the start of any proposed subcontract work.
Following the expiry of the normal requested terms for payment, A Subcontractor that has not been paid will need to take swift action. It is well know 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, it doe snot matter if you are a self employed contractor or a Small Business, you deserve to be paid for the services you have provided.
When can Contractors withhold payment from Subcontractors?
The Main contractor is lawfully able to refrain from payment if the work or goods supplied by a subcontractor are deemed not fit for purpose. Evidence of this should always be provided a long 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 agreement thoroughly. 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 will always find a spurious way to avoid paying their subcontractors so it pays to do your homework on any prospective contract work you are considering doing.
Debt Collection solution for Subcontractors
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 sub contractor 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 are suffering as a subcontractor that has not been paid, speak to our friendly Collections Enquiry today for immediate advice and assistance. Our consultations are Free of charge and we can provide a realistic appraisal of the situation and the possible Business Debt Collection solutions.
It is imperative you do take action to collect what is owed to you in a Professional manner. As a FCA Regulated Company, we conduct all dialogue and dealings with the debtor in a courteous but firm manner.
Time is of the essence when owed money as a subcontractor so don’t delay, call us now for Expert, Professional Debt Recovery advice.