Contractors - How to Get Paid On Time
One the biggest problems that I have found, working in
the construction business as a contractor and business owner is getting
paid on time. If you've been a contractor for over five years, there's a
good chance that you know what I'm talking about. Here's a couple of
tips from a concerned professional.
One of the best things that you can do is to have a schedule of payments in your contract. There's no reason to gouge the person you're working for and receive a majority of your money, before the project is completed. This is simply poor business and has given contractors a bad name for quite some time now.
Make sure that you work out a schedule that works well for you and the person you're working for. Now let's say that you have a nice schedule and you're not getting paid on time. You can stop working on the job, until you get paid, you can threaten to sue or you can cut your losses and quit working for that person.
There are plenty of other things that work well, but working for people with good character is going to be your best bet. Before you even sign the contract, explain to these people how important it is for you to get paid on time and let them know how you will handle this problem if you don't.
How you handle the problem will be up to you, but let them know that you will not tolerate late payments. By simply mentioning this to the other party, will set the tone for the rest of the project. If you don't mention this to the other party, you could find yourself waiting and waiting for your next payment, while getting farther and farther behind in your finances. Don't be afraid to ask for your money or let the people you're working for intimidate you.
If you want to get paid on time, don't work for people you're not comfortable with and don't put up with anyone's excuses.