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Paying Your Subs

Discussion in 'Business Fundamentals' started by GeeMC, Feb 21, 2003.

  1. GeeMC

    GeeMC Member
    Messages: 51

    Hi Everyone,

    I was just curious as to how subs are paid. I don't mean the rate, just the time frame. Do you pay the sub at the end of the storm or do you pay him after you get paid by your customers. I'm just trying to see how the market works here.

    Thanks,

    Bruce
     
  2. Chief Plow

    Chief Plow Senior Member
    Messages: 201

    I pay my subs at the end of the storm. I also pay them cash, and make them sign a slip in which they get a copy, ( and they have to sign ) that way we have no problems.

    Rick
     
  3. BRL

    BRL PlowSite.com - Veteran
    Messages: 1,277

    I pay my subs when I get their invoices, by the terms they state. Most are Net 10 with some 15 & some 30. I subbed for a large contractor last year with Net 30 terms, but it took them 90- 120 days + on most of it & they still owe me around $500.00 bucks. I would sell my equipment before I ever made one of my subs go through that.
     
  4. greenquestlawn

    greenquestlawn Senior Member
    Messages: 157

    Well since I bill my customers on the 1st and 15th of the month, with invoices due in 15 days, I thought it was just smart to do the same with my sub. So he bills me on the 1st and 15th and I pay him within 15 days.
     
  5. GeeMC

    GeeMC Member
    Messages: 51

    Well the reason I ask this question is that I have a friend of mine (Carl) that subs for a guy who has not paid him a cent at all this year and he has over 100 hours racked up since November. I thought this to be a very strange business practice. The business owner keeps telling Carl that he won’t pay until his customers pay, plus a bunch more excuses. My friend is real BS and is afraid to even go work for some one else in fear of this guy not paying him at all if he jumps ship, so he continues to work for him. Anyone have any thoughts? Is it common practice to pay at the end of the season?

    Thanks,

    Bruce
     
  6. JD PLOWER

    JD PLOWER PlowSite.com Veteran
    Messages: 751

    Bruce that is not a normal practice, the guy is a liar and I hope your friend has turned in some type of time sheet to the contractor since this might be his only proof he has that he worked for him. Many contractors are very bad with payments around these parts, however that makes it all the easier to get more subs ;) . Your friend may have to go to court to get what he's due. The contractors clients must have paid him something considering how bad (good) this winters been. He would not continue to service these accounts if they had not paid him.
     
  7. BRL

    BRL PlowSite.com - Veteran
    Messages: 1,277

    Sounds like what I went through. First excuse was the customer didn't pay yet. However, talked to the customer's AP department & found out they had indeed paid. Then there was more & more other excuses & then accusations that I hadn't done my part of the paperwork. My attorney was preparing jump in for me at the time that I resent in proof that I had indeed done what I was supposed to do when I was supposed to. After sending in those dozens of pages of documents, suddenly checks started arriving, albeit 90 - 120 days past due. So my suggestion is to tell your friend to get his ducks lined up & contact his attorney. Also, your friend should have a contract in the future with any contractor he subs with, outlining payment terms etc. I wish him luck getting paid for the work he did under good faith.
     
  8. sschario

    sschario Member
    Messages: 44

    Bruce,

    I am subbing in the same arrangement. I don't paid until he gets paid, which is Net 30 from the end of the month.

    I don't like the terms, but decided to trust him. He has a bunch of subs who seem to be happy with him. And besides, we know where all his customers are ...

    Steve
     
  9. Chief Plow

    Chief Plow Senior Member
    Messages: 201

    Bruce,

    Sounds like real bs to me. He has over 100 hrs in with this guy, and he has not given him a dime yet. My question is ... Is he on the books, or under the table? This might determine his course of action. Does he have invoices of his logged hrs? This is tough situation. That is why I always pay my guys when the storm is over, and cash. That way we have none of these problems

    Good luck man...

    Rick