Subcontracting issue

[andrewstokes87]

Hi,

Sorry if this is in the wrong place. I am currently sub contracting to a firm which has not paid me. When I started the agreement was that I would work 5 weeks in hand and then get paid weekly which worked for about 4 weeks but now I haven't recieved a payment for 3 weeks which in theory has put me 8 weeks behind which totals £6500. When I speak to them with regards payment the just tell me they haven't got any money and will square up with me when the recieve more in but in the meantime I am expected to carry on and the total amount is building each day. Everybody else has been getting paid who is on the books but we are the only 2 sub contractors. My dilemma is now how can I get my money? Should I leave for somewhere else and hope they pay me in the future? Should I stick with it and run the risk that if they go bust I might lose it all? Any advice would be greatly appreciated as I have searched the internet and spoke to many people I know and nobody really knows anything about this situation I am in.

Thanks

 

[CES]

Have you invoiced them? Chase it up the same way you would a private customer. If they are refusing to pay then I would start debt recovery. In this day and age and current climate if they cant pay you then they are trading insolvent which is illegal. I wouldnt do any more work for them while you are owed this money. You may lose the "contract" but its not worth squat if you don't get paid for it anyway.

 

[villa_tom]

Hi,

Sorry if this is in the wrong place. I am currently sub contracting to a firm which has not paid me. When I started the agreement was that I would work 5 weeks in hand and then get paid weekly which worked for about 4 weeks but now I haven't recieved a payment for 3 weeks which in theory has put me 8 weeks behind which totals £6500. When I speak to them with regards payment the just tell me they haven't got any money and will square up with me when the recieve more in but in the meantime I am expected to carry on and the total amount is building each day. Everybody else has been getting paid who is on the books but we are the only 2 sub contractors. My dilemma is now how can I get my money? Should I leave for somewhere else and hope they pay me in the future? Should I stick with it and run the risk that if they go bust I might lose it all? Any advice would be greatly appreciated as I have searched the internet and spoke to many people I know and nobody really knows anything about this situation I am in.

Thanks

I would leave mate then chase the debt while your sitting at home with a nice cuppa!

If they haven't got 6500 quid for you now then they ain't going to have say 10 grand if you do another few weeks for them.

hope you get it sorted mate

 

[GQuigley67]

if you PM me the name of the company, I can check their credit rating and if they are intending to dissolve

 

[CES]

if you PM me the name of the company, I can check their credit rating and if they are intending to dissolve

Is this a wee sideline you've got going Gerry? ... and for an extra £50 quid we can send one of the boys round? Lol.

 

[GQuigley67]

its a program i got talked into buying when i opened my bank account, useless for customers, useful for contracting because you cant check private peoples credit ratings only companies it also tells you if they are about to go into liquidation etc

 

[CES]

Can you check to see when I'm due to go bust? Give me time to empty my van. lol Sounds like a useful tool, which bank is that with?

 

[GQuigley67]

to be honest I don't use it much, I have used it to check out companies for other people though...anyone who wants someone checked out let me know get my moneys worth out of it lol 😛

https://www.creditfocus.co.uk/

this is the site, i got it with barclays. Would be handy if you do alot of subby work for builders

 

[gaspastemania]

this ainty eaga heat is it ?

 

[GQuigley67]

ohh and they have debt collectors aswell, you get a template solicitors letter to send and if that doesnt work then get the debt collectors in

 

[andrewstokes87]

Thanks for all your advice no its not eaga heat I would prefer not to disclose the contractors name for obvious reasons. I keep getting told that they are waiting for payments from the builder and that they are owed over 1 million. Its just a worrying time and I can't afford to lose that money or anymore, does anyone know where I would stand if they were to go bust would I ever see my money owed?

 

[GQuigley67]

you could private mail me and it can strictly be between us, i can tell you if they are about to go bust

by the sounds of it I'd walk away now though and chase them up

 

[Davinder]

PM GQ and see if they are about to go bust, (the more info you have the better).

Keep ringing them. Don't give them a moments peace (at least they won't forget you)

Everybody else has been getting paid who is on the books

If they can pay those people, then I would have thought that they could pay you (especially if there a big company).

Have you invoiced them?

Good question. If you haven't, do it sooner rather than later (don't give them excuses not to pay you).

If they still don't pay then look at this Website:
Debt recovery | Business Link

Send them a 'letter before action' telling them how much they owe, and that it will have to be payed before 'X date' (seven days after sending the letter) and if they don't, you'll add interest to the outstanding balance @ 20% per day.

Or you could go to a debt recovery agency, like the one GQ said (amusing your with Barclays).

 

[AWheating]

if you are still getting materials from a main merchant then they are paying the bill with them so why cant they pay you? WALK, you are at the bottom of the food chain when the stuff hits the fan.

 

[tamz]

If they go bust you will get nothing. NOT A PENNY!
The only thing you will get are few letters from some liquidators telling you the bad news and asking you to confirm what you are owed. Maybe if you are lucky, a letter saying you may get 10p in the pound, (don't build your hopes up on that one) then about 2 years down the line, a final one confirming what you already knew. There is no money left for you!
The liquidators, banks and major creditors get the first shout. The small fish always suffer.

 

[REDSAW]

load up yer van with as much as you can carry first though and count it as legal deposit of monies owing, give em a reciept.

 

[GQuigley67]

load up yer van with as much as you can carry first though and count it as legal deposit of monies owing, give em a reciept.

good advice that, "borrow" some stuff for compensation

 

[markfxy]

As the old saying goes It's the squeaky wheel that gets the oil so start badgering them ring them constantly and don't do any more work until youve received payment. I know I've found out the hard way and when everyone else has been paid and there's no money left you're stuffed never again!.

 

[secret squirrel]

What an awful position to be in. The trouble is if your waiting for money I'm sure someone else is down the line. Even if you don't know about it. The bank may be holding the purse strings closed to the investor but whatever is going on no one tells the people doing the hard graft.

You can't continue to trade knowing your insolvent or going to be but this doesn't stop investors trying to raise capital through other means, new loans, banks etc.

Unfortunately, none of this helps you. If it were me I'd agree with everything said here and stop work. Again, unfortunate but true after the bank and everyone else has had the lions share of the carcass its only scraps left for the workers if that.....