If all else fails, be sure your client contract is sufficient to enlist a reputable collections agency. 6. Every invoice that was sent to the client was paid. It takes less emotional energy to assume the best and persist. 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. To ensure that you actively communicate with clients, you need to decide the means of communication. Steps When Customer Refuses Paying Contractor Knowing what steps to take when a customer refuses, not paying contractor is the thesis of this article. QUESTION: What Options Do General Contractors and Sub-Contractors Have When A Customer Fails To Pay? 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?. Just like employees, contract workers should send their claim to the business in writing. All of a sudden we learned what a “dead beat client” is. Just because you have accrued costs, doesn’t mean you’re entitled to your first payment yet. 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 […] It's entirely up to you to take whatever steps are appropriate and necessary to get your clients to pay up. Independent contractors typically have contracts with their employers, who are also referred to as customers or clients. How to deal with indecisive clients: The key challenge to overcome when dealing with indecisive clients is late or lack of communication. The sad fact is that even the most seasoned independent contractors (ICs) can have difficulty getting paid. Although an uncomfortable situation, contractors need to be informed. If they don't, they should. “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. Both the “celebrity” general contractor and the homeowners were thrilled every time they came to the job site to meet my husband. 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. Below are steps taken in this particular job, yours might be different, I have never signed a contract with the agency but was taken on to develop an IT system for their customer. – Avery Fisher, Remedify. However, it may still be possible to force your client to pay as agreed without a written contract. A lawyer's guide for freelancers. Always approach with empathy and understanding. There is no government agency that will help you get your money. Circumstances get complicated and it’s often too humiliating for a client to share their situation. And while there’s little you can do if a client refuses to communicate, being a bit proactive does help. 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. What if your client won't pay? Until the last invoice. When a Contractor “Refuses” to Pay, Remember Your Shared Goal. When the contractor refuses to pay the subcontractor, it is up to the subcontractor to protect their legal rights and obligations through a … Some clients feel free to pay late; others never pay at all. 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