Subcontractor and not been paid? – Get Expert Advice now
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 unpaid business debt and possible disputes once the subcontract work has been completed. The contract should also include any penalties 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.
Subcontractor not been paid – Commonly asked questions
What is a sub contractor?
A subcontractor provides services to a contractor in order to help them complete a project. They are usually chosen for their expertise in a particular field of work. Subcontractors are very often self employed individuals but can also come in the form of a Limited Company or LLP.
What is the difference between a contractor and subcontractor?
A contractor is the main entity that is hired by a client for a specific task or project. Instead of being an employee of the company, a contractor works on a contractual basis. A subcontractor could then be hired by the contractor to complete specific tasks.
Great examples of this are:
- A Digital marketing company (the contractor) that hires a website designer (subcontractor) to fulfil a particular project.
- A Building contractor that hires an electrician for a housing development
- A Logistics firm that hires a local delivery driver.
How does the role of subcontractor work?
It is usually very straightforward. Terms will be agreed between the contractor and subcontractor for working hours, pay etc The subcontractor will work on temporary or project by project basis.
The subcontractor will normally agree payment terms with he contractor as part of the initial negotiations. Usually subcontractors are paid on a weekly or monthly basis.
Reasons for subcontractor not being paid
There are a multitude of reasons why a subcontractor not been paid. These can vary. Depending on the agreement between the subcontractor and the contractor, the subcontractor will normally submit time sheets or details of services provided on a weekly basis.
There are instances where the contractor has not been paid by the client or main instructing party. They may try and stall payment to the subcontractor on this basis however this is not the problem of the subcontractor. They are entitled to be paid in line with the terms agreed at outset.
Another common situation is where the services provided by the subcontractor have not been deemed as satisfactory. This is where the importance of clear and defined contract terms become clear. It is also highly advisable to get time sheets signed etc
Subcontractor not been paid – What action can be taken?
If you are a subcontractor that ha snot been paid, you can take 3 basic steps to remedy this.
- Speak with the contractor – Try to understand why you have not been paid and when/if the monies you are owed will be paid. If you are being fobbed off for payment then you will need to take action.
- Send a reminder letter or email – Sending a polite payment reminder email or letter can help. Non payment of your invoice may just be an oversight.
- Send a letter before action – If your polite reminder is ignored, then sending a letter before action. This lets the contractor know you are serious about getting paid.
- Speak to our Debt Collection Experts – If there has been no response to your letter before action, it is time to seek Professional help.