How to pay subcontractors?

[Nikki_A]

Hi, I am trying to find a way which works for both subcontractors and the contractor with regards to payment.
Anyone have experience in a way which works for all involved?
Ideally I want the day worksheet and the certificate for the job sent in as soon as the job is completed. How do I encourage the regular return of paperwork and pay the subbies monthly without getting a massive influx at the end of the month?
Thanks

 

[Pete999]

Include this requirement in your T&C contract.

 

[Deleted member 26818]

I take it, that you are a Contractor?
Not someone who is paying a contractor who employs subcontractors.

 

[Nikki_A]

I take it, that you are a Contractor?
Not someone who is paying a contractor who employs subcontractors.

Yes I work for the contractor. They way we pay our subbies is not working, but want to try and find a way the suits all.

 

[Anthony S]

Pay them weekly and then you might get the paperwork weekly on a regular basis. You need to understand subby or not, working people want regular income.

 

[45140]

How do you pay them now and what is not working ? To establish the right solution we need to understand what the problem is. Its an unusual question because the longer money stays in your account the better that is for you in terms of liquidity and financing

 

[Anthony S]

Pays them monthly but wants the paperwork in well in advance by the sounds of. If they don't have the cash flow to pay the subbies on weekly payment then shouldn't be in business. Subbies shouldn't be used as credit.

I have never and would not work for a contractor that wouldn't pay me the maximum of a week in hand.

Plenty of subbies get knocked and its not worth the risk. Going on a lot these days.

 

[APE37]

Tell me about it Anthony S, going through this at the moment myself.

 

[MJPD29]

Pay weekly and pay on time and you will get all the paperwork you need no doubt. If not the funds to be paying weekly then you won't last long

 

[Robson689]

You shouldn't expect any paperwork till you've paid for the work that was done

 

[Anthony S]

Tell me about it Anthony S, going through this at the moment myself.

Its rife out there with knockers and ponces who take on work and just sub sub and sub. Basically freeloading off the back of the manual working person.

As well as Companies and Contractors wanting Credit off small Subbies and one man bands they also use agencies because they get 60 day + credit and hope they get paid around 42 days so they can pay the agency on day 60.

The economics of the industry are built big debt and credit and I believe its ready to pop and we are in for a recession which believe is already underway in some areas.

 

[BruceBanner]

Just changed ours to week end & materials required at stage paid in advance & delivered to site. Once on site client responsible for safe storage, if it wanders of its down to them. 3 or 4 chancers last couple of years using me & mine to finance their projects.
If they aren't happy with that now i walk away.

 

[Nikki_A]

We currently pay our subbies weekly and have done for 26 years, but most of the local contractors pay monthly. Trying to see how others make this work.

 

[Nikki_A]

Paying weekly based on SORS is not working, we end up with a latge amount of missing certification which is hard to get completed due to the subbies already being paid. Trying to find a balance which works for both as we do not want to cause upset, but we do require the certs.

 

[Deleted member 26818]

I would assume that you would pay a week in hand.
If that last week is not enough time to get the certs in, you might have to go for na retention.