We are an electric subcontractor and for years we worked all over Ohio. We are happy to get the work but so often we can’t get paid. Seems like the little guy always gets stiffed. What are we doing wrong? – Shocked.
You may be the best electrical contractor on earth, but unless you develop consistent and purposeful credit practices, you will often come up empty. Make it a priority to establish due diligence procedures and strong credit practices. Start with asking the right questions about everyone above you in the payment stream. What references are available? Has the general contractor verified financing? Do you have protection if owner fails (pay-when paid)… and Shocked, listen carefully: DON’T SIGN ANYTHING UNLESS YOU HAVE THE ANSWERS! In case you haven’t noticed in the rush to get a contract, every general contractor you are working with has a payment provision in the contract. READ IT! If it’s a “pay if paid” clause, beware; you may be vulnerable. It will never hurt you to improve your due diligence of the owner. If you don’t like what you see, adjust your bid accordingly.
Shocked, congrats on getting contracts. You deserve to get paid! To get yourself into the best position to get paid, you need to up your game, YouDig?