Independent contractors typically have contracts with their employers, who are also referred to as customers or clients. However, it may still be possible to force your client to pay as agreed without a written contract. Contractor's Question: I have worked for my current client, who is a development agency, since last year as a freelancer on various projects, including one for their client (the customer) who commissioned work with the agency. A lawyer's guide for freelancers. Although an uncomfortable situation, contractors need to be informed. What if your client won't pay? 6. Just because you have accrued costs, doesn’t mean you’re entitled to your first payment yet. When the contractor refuses to pay the subcontractor, it is up to the subcontractor to protect their legal rights and obligations through a … You know the General Contractor needs time to complete their pay application process before the owner issues payment to them and they can issue your payment. The sad fact is that even the most seasoned independent contractors (ICs) can have difficulty getting paid. – Avery Fisher, Remedify. If all else fails, be sure your client contract is sufficient to enlist a reputable collections agency. Until the last invoice. Some clients feel free to pay late; others never pay at all. If they don't, they should. It takes less emotional energy to assume the best and persist. Steps When Customer Refuses Paying Contractor Knowing what steps to take when a customer refuses, not paying contractor is the thesis of this article. Always approach with empathy and understanding. And while there’s little you can do if a client refuses to communicate, being a bit proactive does help. This structure can become quite complicated on almost any type of construction project, especially when there is a dispute or failure to pay for work performed. It's entirely up to you to take whatever steps are appropriate and necessary to get your clients to pay up. Below are steps taken in this particular job, yours might be different, Most payment disputes can be easily avoided with a clear invoicing process or quickly resolved with a gentle reminder – but what can you do if your client simply won’t pay?. There is no government agency that will help you get your money. ANSWER: Many issues can arise for General Contractors and Sub-Contractors alike when a homeowner, real estate investor, property manager, etc… refuses to pay for a job, including but not limited to, being unable to pay staff, purchase materials and/or make […] “The contractor is totally dependent on their friend to pay promptly and has no control over the relationship with the end client, placing them in a vulnerable position.” Sinclair concludes: “Unless expressly provided for in the contract, contractors don’t have to accept a ‘pay when paid’ attitude from their client or agency. When a Contractor “Refuses” to Pay, Remember Your Shared Goal. Every invoice that was sent to the client was paid. How to deal with indecisive clients: The key challenge to overcome when dealing with indecisive clients is late or lack of communication. To ensure that you actively communicate with clients, you need to decide the means of communication. Circumstances get complicated and it’s often too humiliating for a client to share their situation. Just like employees, contract workers should send their claim to the business in writing. QUESTION: What Options Do General Contractors and Sub-Contractors Have When A Customer Fails To Pay? All of a sudden we learned what a “dead beat client” is. I have never signed a contract with the agency but was taken on to develop an IT system for their customer. Both the “celebrity” general contractor and the homeowners were thrilled every time they came to the job site to meet my husband.