One Job Put This Contractor Out Of Business
It was only a few years ago that I was talking to a
friend of mine about a plastering contractor who had just went out of
business. He didn't underbid the job, he had a good contract, but the
person he was working for, went out of business and took the plastering
contractor down with him.
The moral to this story is simple, if someone doesn't have the money to pay you, you shouldn't be working for them. It doesn't get any easier than that, but hundreds if not thousands of contractors go out of business or struggle through their business, because someone isn't paying them.
The plastering contractor was waiting for his first payment, but the entire job was completed. First he waited 30 days, while he was still working, then he waited 60 days with the promise that he was going to get paid any day now. By the time it had reached 90 days, it didn't matter anymore. The plastering contractor didn't have any more money to pay his employees or overhead.
If this contractor would have stopped working after 30 days, he would have still been in business. He still would have had a plastering company, even though he probably would have never worked for this particular builder ever again. That's just the way it is in the construction business. If you're not bending over backwards for large home builders, you're not going to be working for them. They make the rules you follow them and there's nothing you can do about it, because there's 50 other contractors waiting to take your place.
The do anything for your client, no matter what type of attitude can put you out of business. That's what put this plastering contractor out of business and it will continue to put other contractors out of business in the future. If you're not getting paid and you want to stay in business, get rid of the losers who aren't paying and keep working for the people who are paying.
This contractor didn't just go out of business, he was left with bills to his material suppliers, employees, federal and state taxes, office rent and truck payments. This eventually led to bankruptcy and losing everything that he had worked for, his whole life. One contract ruined this plastering contractor's business.