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Still haven't been paid from Dec 19th Storm!!!

Discussion in 'Commercial Snow Removal' started by sailscall01, Feb 22, 2010.

  1. sailscall01

    sailscall01 Member
    Messages: 66

    Anyone else still waiting on getting paid from the December North East Storms?? I've been subbing for a guy for the past 3 years. He never seems to have our full checks.. Always has an excuse of some sort that the place that pays him is holding his money. We usually wait 30 days to get paid.. Which I can understand. We were told 45 days from the beginning of the snow season that we would be paid.. Ok, show me the money payup.. Now I am hearing that "we hope to be writing some checks by the end of this week".. Its been 60+ days so far and counting.. Not to mention that we had 2 back to back blizzards within a week and no $$ yet for those storms.. :realmad:

    How do you get paid as subs?? At the end of each storm?? 30 day terms/45 day terms??
    Last edited: Feb 22, 2010
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Looks he maybe paying himself first Time to rebill them.
  3. erkoehler

    erkoehler PlowSite Veteran
    Messages: 3,252

    I setup as I will pay all of my guys within 40 days. 90% of the time though it is within a week or two of the event.

    P.S. I don't have many guys :)
  4. sailscall01

    sailscall01 Member
    Messages: 66

    There is possibly a Thursday storm heading our way.. Might be rain, but would you still plow/salt for this guy if it does snow?? He is holding 3 storm checks.. Do I feel a cold/fever coming on??:dizzy:
  5. digit

    digit Member
    Messages: 94

    I pay my guys every two weeks. If it snows alot I will pay them every week they are on payroll for snow only not subs. I have always felt it is the contractors responsibilty to pay the help regardless if he got paid or not.
  6. coldcoffee

    coldcoffee Senior Member
    Messages: 776

    One of my biggest accounts I have been servicing for 18 years, has only paid me for November. Still waiting for December, January and soon will be billing for Feb. I'm taking a gamble at this point, relying on the fact they have always come through in the past, but they know my patients is wearing thin.

    It's a reflection of just how bad things are across the board. I think you have to really weigh things out now, more than ever, before you pull the trigger. This should get interesting...
  7. Wieckster

    Wieckster Senior Member
    Messages: 131

    I would plow it right up to his front door of his house then maybe he will get the picture and pay you,or at least he wouldnt beable to get out LOL
  8. mullis56

    mullis56 Senior Member
    from Indiana
    Messages: 824

    We pay close to 100 people (sometimes over 100 guys) after plowing events and they are paid in 10 business days! Yes they are paid in full within 10 business days! Some are employees most are subs, but all get paid!
    Last edited: Feb 22, 2010
  9. CMerLand

    CMerLand Senior Member
    Messages: 173

    Its all about cash flow and sometimes its tight. I'm working from the other side of the equation, in that I have subs that are expecting to get paid. I'm always straight with them and tell them I will pay you what I have, when I have it. We were slow to bill out our Dec storms due to the holidays and a death in the family, but as that money has come in, I've paid off all my guys from that storm.

    Now the back to back storms in February, are hugely taxing on cash flow, because the money to cover the materials/repairs/fuel/expenses of those storms is coming from the cash flow of the December storm. And now those storms are just billed out (no office staff here) I wont get paid from most for 20+ days.

    It comes down to integrity and my guys know I'm good for the money. A few guys say, give it to me when you can, which helps me tremendously, and got a couple new guys that I'll get paid first, just cause they dont know me well enough to know I would never default on em. My guys know I'm very generous when I have the cash, and dont bullsh%t em when I dont. Cash flow is going to be tight for the next couple of weeks, but we'll get it done. If your feel your guy is holding out on you or not good for the money, then make the decision to stop working for him. But understand, the businesses we plow for aren't exactly rushing to cut their checks to us because they are playing the same cash flow game we are.
  10. Mackman

    Mackman PlowSite.com Addict
    from S.E. PA
    Messages: 1,356

    I been paid for that storm. I get paid on or aound the 12th of every month. So once every 30 days. Never had one problem. Getting ready for my big FAT check coimg up for the back to back storms.:nod:
  11. creativedesigns

    creativedesigns PlowSite.com Addict
    Messages: 1,929

    Holly jebus! Thats alot of guys for payroll. Are your employees paid only when it snows or on a bi-weekly minimum salary?
  12. KBTConst

    KBTConst Senior Member
    Messages: 426

    Maybe he feels if he pays you in full you will go somewheres else. So this is his way of keeping you from leaveing.
  13. blaryslawn

    blaryslawn Member
    Messages: 70

    I'd have to agree.... It really depends on how well you know and how much you trust the guy you are subbing for. Its rediculous the amount of money I had to shell out to cover the mere costs of salt, ice melt, equipment repairs, temporary labor, fuel, etc... money runs tight for a while when you have gone through four storms and you have not received all the money from the first one. I know I dont have a business, or checkbook for that matter, large enough to finance all of the costs of that many storms in a row along with paying all help and subs before I start getting paid by my customers.... Now if there are people begging you to come push for them, and have faster payment terms, go for it... but If the guy is good for the money and its just going to take him some time, I wouldnt slap the hand that feeds you. with the way things are these days, there are probably plenty of people out there that would be willing to take your place. JMO
  14. mullis56

    mullis56 Senior Member
    from Indiana
    Messages: 824

    Weekly for employees, 7-10 business days from event end date for subs. Most of payments are to subs, but most all of ur subs love us!

    When it doesn't snow employees wash trucks, take deliveries of bulk salt, clean up shop, move ice melt to various staging areas in the cities, many other things t prepare for next event, etc, then if we run out of work, they out of work. ALL SNOW WORK is paid at 1.5 normal payroll rates however so they keep smiles on their faces.

    Yeah anyone wanting to talk about cash flow, well try being in my shoes....
  15. rob_cook2001

    rob_cook2001 2000 Club Member
    Messages: 2,171

    The company I sub for treats me pretty dang good (just made me a site supervisor :)...) They usually pay with in 2 weeks but sometimes it's 30 days. That's not bad, I am still waiting on some of my hay customers to pay me from 1st cutting last year!!!
  16. snow man 0311

    snow man 0311 Member
    Messages: 66

    I m waiting on this ***** of a new customer said the checks in the mail didn't like the way we plow so screw him ..If he doesn't pay I can deliver snow just as fast as I move it .Ill plow him in ...
  17. Banksy

    Banksy PlowSite Veteran
    Messages: 3,113

    I'm still waiting to be paid from this same exact storm when we got it here. See my avatar.
    Last edited: Feb 22, 2010
  18. lilweeds

    lilweeds PlowSite.com Addict
    Messages: 1,178

    I have one account from that storm that is due. If the contractor is a big snow outfit out of philly, then don't hold your breath. Who is it? PM me if you don't want to post it.
  19. LwnmwrMan22

    LwnmwrMan22 PlowSite Fanatic
    Messages: 27,864

    Same here. It's all about cash flow. I've tried to keep everyone paid up this year, but I've also tried to stop using credit this year as well, so everything is getting paid, including salt, repairs, fuel, before I get paid from clients.

    Yesterday I got my last check from the seasonals for December, so 2009 is off of the books now.

    I DO have quite a few that owe me for January, which my seasonals are billed on the first of that month, meaning they've had the invoices some 50 days now.
  20. SnowGuy

    SnowGuy Senior Member
    from NW Ohio
    Messages: 201

    In my opinion, drop him. If you are not paid within 2 weeks after an event, the guy does not have the proper funds to be in the snow removal business. Takes money to make money. You should not have to finance his operations.