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Discussion Starter · #1 ·
Ok so I need help in figuring where I am wrong. So I hire a contractor to pickup some grass cuts for me. The agreement states payment is 35-40 days.
First cuts are done may 5th with the most recent being June 2nd.

First call I get is June 2nd asking when they can expect payment because they have bills. Now mind you of the terms 35 days. So wr mail a payment for the cuts that were done May 5 too May 13.
Now they are mad because accordin to them I said I would pay them for everything upto the end of the month. Don't recall and not in contract, so now they are demanding full payment even for the cuts this month.
Is it me or does this not make sense?
 

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Welcome to the world of subcontractors. If you have a signed contract stating payment is 35 days after work completion, I say let'em pound sand.

But, if you like the contractor and would like to keep him, try to work it out.
 

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Discussion Starter · #3 ·
I was actually cutting them because if lousy photos and having to go back. Just can't figure people they actually said I should have been clearer in the contract. Lol 36 days from invoice can't be much clearer.
 

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Nothing you can do, IMHO once it's in their head that you owe them something NOW there's nothing you can do to change their minds. Sad thing is people who do this usually burn their bridge to continue receiving and billing for work!
 

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I pasted a few years ago on hiring a sub contractor to do work in an area I had stopped covering! I just figured it would be to may headaches. I only have employee, but with all the cheap work these days it`s getting harder and harder even pay them.
 

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I find i get MUCH better help by paying every 2 weeks for all work completed. When i used to hold out 30-45 days i had the same issues......
 

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I find i get MUCH better help by paying every 2 weeks for all work completed. When i used to hold out 30-45 days i had the same issues......
If you can afford it this is definitely the way to go, worth it to lose the headaches and your guys will appreciate it.
 

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I find i get MUCH better help by paying every 2 weeks for all work completed. When i used to hold out 30-45 days i had the same issues......
Agreed...no matter what business model/trade it is. Whenever you open the purse strings more frequently and on time the better service you will receive. You will get a more loyal sub that will actually be calling you to whore their services out, rather than having to track them down in hopes they can get the work done on time and correctly.
 

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Discussion Starter · #10 ·
I do agree to a certain point. However I also feel that you have to prove yourself first sometimes.
If I didn't have to send them back out because of bad photos or show them where the house next store was I would have no problem with them asking me about paying more often. I had one contractor that never even asked I just decided to pay more often because of the quality of work.
 

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I have 3 contractors working for me. They are paid every week on Fridays after the first 30 days. No problems from these 3 because for the most part they get the work done and take the right photos.
 

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It's difficult enough to get a sub to wait 3 days for payment let alone 36! Many here I'm sure can identify with these common issues: Phone call the day before work is due or perhaps the morning of stating that the sub has no money for gas and therefore basically dumps their entire workload back in your lap. Camera died so none of the pictures are date stamped. Pictures emailed to you individually in bmp format at like 5mb each (never have unraveled how that one happens). Pictures taken at night with headlights shining on grass. Mower broke so all yards completed by weed whip. Truck broke so all service completed from the trunk of Honda Accord and visible in pics. Duplicated and cropped pics of previous service. Undisclosed person at property told sub the house was sold and to stop service. Sub gets parking ticket while mowing and asks you to help pay for it. Inability to keep current route list even though you just sent it 2 days ago. With no current list, no lockbox combos (which you figure out after the 5th phone call). Sub's 10 year old son in back ground of weed whip action shot and you instantly think of the 1000 ways he could lose an eye. I could go on an on forever. For a few bucks proffit on each house is it really worth it? I must admit that I'm really not all that smart because it only took about 100 subs over the past 7 years for me to figure out its not worth it..
 

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re

It's difficult enough to get a sub to wait 3 days for payment let alone 36! Many here I'm sure can identify with these common issues: Phone call the day before work is due or perhaps the morning of stating that the sub has no money for gas and therefore basically dumps their entire workload back in your lap. Camera died so none of the pictures are date stamped. Pictures emailed to you individually in bmp format at like 5mb each (never have unraveled how that one happens). Pictures taken at night with headlights shining on grass. Mower broke so all yards completed by weed whip. Truck broke so all service completed from the trunk of Honda Accord and visible in pics. Duplicated and cropped pics of previous service. Undisclosed person at property told sub the house was sold and to stop service. Sub gets parking ticket while mowing and asks you to help pay for it. Inability to keep current route list even though you just sent it 2 days ago. With no current list, no lockbox combos (which you figure out after the 5th phone call). Sub's 10 year old son in back ground of weed whip action shot and you instantly think of the 1000 ways he could lose an eye. I could go on an on forever. For a few bucks proffit on each house is it really worth it? I must admit that I'm really not all that smart because it only took about 100 subs over the past 7 years for me to figure out its not worth it..
Hell I have to carry a few hundred bucks in cash because some of my subs will meet me at a job and then say "I don't have enough gas to get home" Makes bookeeping a PITA
 

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Hell I have to carry a few hundred bucks in cash because some of my subs will meet me at a job and then say "I don't have enough gas to get home" Makes bookeeping a PITA
This is an easy fix.

Im not sure your accounting software, but they are mostly the same.

Make a petty cash line on your balance sheet.

Connect it to a bank account labeled "petty cash".

Every time you pay cash do the exact same thing you would do when you cut a check..just use the petty cash account.

Make the sub sign for the cash...and mark it as payment to sub..

Whether he buys gas, oil, tarps, or weed has no bearing on your bookkeeping.
 

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I agree with the pay every two weeks thing for grass cuts...we did the same thing...but we also had some very good crews and never had to worry about photos....

But then again we had employees and not subs....
 
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