It’s Wise Up Wednesday! Are You Still Having Payment Nightmares?
This week’s “Wise Up Wednesday” blog post is a very brief one about avoiding Payment Nightmares…
Things might be starting to pick up, but we know that many Specialist Contractors are still experiencing those Payment Nightmares!
- “Underpayment without reason, pay when paid and if certified”
- “Spurious contra charges with no prior notice”
- “Unpaid invoices in excess of 6 months”
- “Contractors who completely ignore you, even after repeated threats of legal action”
- “Even large contractors who used to pay on time hold onto payments until you chase them”
- “Contractors use you to bankroll the contract,then screw you to maintain their margins”
- Contractors that are in adversarial mode from day one!”
These are actual situations that Specialist Contractors have to fight to resolve on a daily basis.
So despite there being more enquiries about and the whiff of good times ahead, we know that right now times are still really hard for everyone in construction and engineering!
Contractors Are Stealing Your Profits!
What’s making it worse is that most big Contractors are so reliant on cash management for their profits that they are underpaying you and paying you late!
They steal your profits so that they make theirs.
And that’s official because if you read it carefully that’s what the Governments own report says.
You can find it here – BIS RESEARCH PAPER NUMBER 118
Of course it doesn’t use the word “steal” but it does say that;
“As part of a relatively under-capitalised industry, construction firms are highly dependant upon sustained access to trade credit…”
“Trade credit” – what that means is your money!
Now even some of the smaller Contractors, who you thought you could trust, are taking a leaf out of the big boy’s book and screwing their sub-contractors.
I’m sick and tired of seeing good hard working Specialist Contractors like you suffering at the hands of the non-paying, arrogant, bully boy Contractors!
So What’s To Be Done About It?
As you know we have campaigned for the widespread adoption of the Streetwisesubbie Fair Treatment Charter, and we thought we were getting somewhere. But the fact of the matter is that Specialist Contractors have been sold down the river by the Construction Leadership Council.
If Specialist Contractors are ever going to receive the returns that your hard work and efforts deserve, effective action needs to be taken at grass roots level.
- come and join the debate with 1,900 Specialist Contractors in our FREE LinkedIn Group
- already in the group? Then please spread the word to every Subbie you know and share this blog with them and on social media
- in other groups on LinkedIn? Then please promote this group in your comments and posts
- check out the free resources on our website
- in a Trade association? Why not get in touch and see how we can link up
- think more should be being done or got some ideas? Please get in touch!
In the meantime if you need any help with any of your business issues, please don’t hesitate to pick up the phone and give us a call.