Working as a Sub - No pay since NOV

Jacobmb

Senior Member
Location
Toronto, Canada
For those of you working as sub contractors with your own plow and salter, on hourly pay, how long do you let your payment be late before you start getting worried, checking in, complaining and take action?

Invoice is currently 2 weeks past due, for work performed November.

Asking for a friend :drinkup:
 

NBRam1500

Senior Member
Location
New Brunswick
When we invoice clients, there is usually a 30 day window , after that late fee/interest adds on.

Keep in mind big commercial clients will wait as long as possible. We deal with a multi million dollar company for summer contract work. They will wait til the last possible day to pay. Every minute their millions sit in the bank is more interest they are getting.
Government jobs are the same way. I own a retail store as well and have seen a government employee with company credit card and the card got declined.
 

JMHConstruction

PlowSite Fanatic
Location
Kansas City Area
Is this the first year dealing with this contractor?

My contractor pays us within 10 business days. They've only been late once in the 6 or 7 years I've worked for them. In that instance, I called after about 3 weeks (15 business days) to make sure the check didn't get lost in the mail. I was explained the situation, long story, but they were honest, which is big points in my eyes. Had a check about a week later, with a little for the long wait.

Now that said, if it was a new contractor I would be a little more leery. It also sounds like yours is pretty late. I've heard of some contractors giving 2-3 weeks, and others however long it takes to get paid. You want to work for larger companies, because they are usually the ones with the capital to pay their subs on time.
 

rizzoa13

Senior Member
Income is income your either paying on it this year or next. I’m inundated with write offs for this year so I’d rather take the pay now rather than later, he might be the same way.

That’s a long time overdue for an invoice if those were the terms you’ve discussed with the guy. The company I sub for I know the owner personally and let him pay me as it comes in. Snow removal and pretty much any contracting work isn’t steady money it’s usually in large chunks. Operating costs add up until that check comes in so you’ve got to be careful or keep a nice backup of working capitol.

That said if your uncomfortable with it wait until there’s snow in the forecast and he calls you. Let him know your not ok with going out with November’s bill unpaid and see whether he writes that check or not. Little leverage goes a long way.
 

cjames808

Senior Member
Location
SE WI
Depends. We bill at the end of month, and all our larger accounts are net 30. They will wait until the last day to pay too. Just got a set of checks in Friday as it was the last business day of the month.
 

Mark Oomkes

PlowSite Fanatic
Location
Grand Rapids, MI
Is this commercial work ?

Does it matter? A sub is a sub is a sub.

When we invoice clients, there is usually a 30 day window , after that late fee/interest adds on.

Keep in mind big commercial clients will wait as long as possible. We deal with a multi million dollar company for summer contract work. They will wait til the last possible day to pay. Every minute their millions sit in the bank is more interest they are getting.
Government jobs are the same way. I own a retail store as well and have seen a government employee with company credit card and the card got declined.

You are the contractor, not a subcontractor. OP asked about subcontracting.

For those of you working as sub contractors with your own plow and salter, on hourly pay, how long do you let your payment be late before you start getting worried, checking in, complaining and take action?

Invoice is currently 2 weeks past due, for work performed November.

Asking for a friend :drinkup:

What were the terms of the agreement?

I treat subs the same way I treat employees. They send a bill, we pay within the terms. Doesn't matter if I was paid or not, the employees and subs get paid.
 

NBRam1500

Senior Member
Location
New Brunswick
If work was performed in November
Invoice is currently 2 weeks past due
Would had to have been issued first of December with 14 day term.

Was there a contract agreement about payment terms ? More info
 

Fourteen Contracting Inc.

PlowSite.com Addict
Location
Vaughan, Ontario
I am having a tough time understanding this.

If it was work preformed in the month of November, 2 weeks past due? Net 10? Net 15? What are the terms?

If work was performed in November
Invoice is currently 2 weeks past due
Would had to have been issued first of December with 14 day term.

Was there a contract agreement about payment terms ? More info

I might be able to help. First snowfall in Toronto was Nov 11 - 12. So if he invoiced right after he did the work and gave 30 days then the invoices would be 2 weeks past due right now.
Don't know how well OP knows the contractor but threatening to register a lien on the property should be enough to light a fire... especially is the property is not the contractor's.
These are the actual new rules.... scroll down to prompt payment / payment disputes.

https://www.attorneygeneral.jus.gov.on.ca/english/construction_law_in_ontario.php
 

Top Forums

Similar threads

Similar threads

Top