I have struggled with this issue with several different facility maintenance companies that handle HVAC service, repair and installation for National Accounts. I have ended up turning down work from some companies because it was just to hard to get paid by them. The license board in my state requires a contractor to pay a sub-contractor within 10 days of the invoice however the facility maintenance companies are not considered a licensed contractor. My response has been to aggressively pursue collections with them and eventually have stopped doing work with most of them. Does anyone else just accept the slow 60-90 even 120 days to pay in order to keep the work?
at some point you have to cut them off -
We fixed this by expanding other business and then we didnt need there income-
After 90 days I dont even need there $$ if you made it that long with out them.
Tell them your terms and let the chips fall were they may.
Independant contractor is just that - work for who you want
Some contractors are bad / slow with paper work, there for they pay late, but they still pay you, if you have patiance talk to them to reduce the time, as you indicated they give you steady flow of work. As you look for faster paying costomers, who might be 1 time clients.
I am a Certified Building Contractor, and pay my subs on time, although, subs must perform…Any contractor / subcontractor relationship, should be properly constructed with a proper contractor / sub-contractor contract, protecting both parties…
I have found subs who produce estimates that get accepted, really do not have detailed contracts, thus giving the contractor more freedom in payment.....
Listen guys, protect yourself, if need be, take a course on subcontracting—know what to put in your contracts, so you are protected, and get paid…a good contractor will understand and sign…those guys that take 60-90–? to pay, normally won’t sign those contracts----which is a good indication, that you might have to wait or never get paid…my contracts with subs, can be up to 10 pages—I get very detailed on scope, time frame, draws / inspections…ect…my subs are protected basically with the contracts I give them----I promise payment, upon certain job scope completion…I like to keep my subs happy—if they keep me happy----BUT CONTROL is in the Contract–check it out.
The best way to handle a situation like this is to have strict time lines and expectations and ensure that they are kept and all parties involved are on the same page.