+44 (0)20 3150 0710 charles.hogan@caliba.uk
Sub-contractors, no doubt you’ve encountered this situation before. You do your best effort to make sure the payment application is issued on time (otherwise risk not getting paid until the following month!). You spend a lot of time chasing to make sure it’s received until payment notice day and then…

Silence…

You then chase the main contractor to tell you what they are going to pay you. With only a few days until pay day, you find a whole raft of adjustments:

  • Under valuation of the measured works
  • Unexpected contra charges
  • Unexplained deductions to variations

…and the list goes on.

Then it dawns on you, “how am I going to pay all the bills?” You start calling your suppliers to let them know why you can’t pay their invoices this month. Hopefully they understand and give you more time to pay. You may even end up drawing money from your own personal account to fill the cash hole this has left.

It still amazes me how often I hear this story. That sub-contractors still fail to receive payment notices from their Clients. The amount of stress this causes a sub-contractor is unreal.

Main Contractors – There are numerous court cases demonstrating the Main Contractor must pay the full value of the Sub-Contractor’s payment application if the Main Contractor fails to submit a valid payment notice on time. Even if the application is wrong! Don’t subject your organisation to this risk. Also note you’re not doing this only to comply with the Housing Grants and Construction Act. You’re doing it so the subcontractor can run his business.

Sub-Contractors – Speak up and don’t suffer in silence! Chances are the Main Contractor doesn’t even know they are creating an issue. Let them know the hardship they are causing. Give them a chance to improve. Then if the message still isn’t sinking in, take a stand.

There are ways to maintain the relationship AND ensure you receive adequate notice. If you need help with this or similar issues, give us a call.

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