Do you think this is unfair?

Question

My husband has his own business, but we employ people who are paid weekly.

We outright own our home (no mortgage) and have no car or credit card debts.

Anyway, one of our main contractors knows us quite well and today, when we are usually paid the invoice and pay our employees, no money was paid to us.

So my husband just spoke to the big boss contractor who said they were having financial issues as they were waiting on a big cheque to come in that was late, so we would not get paid for another week.

My husband said that it would have been nice to have been told beforehand, and this guy had the nerve to say that we did not need the money so he just paid his other contractors and presumed it would be ok.

My husband commented that he still had wages to pay and whether WE needed the money or not was not the point - we were owed it!

Now in truth, we do have the money to cover wages anyway but I think this is completely unfair.

Why should we be penalised for our good money management?

Are contractors allowed to just pick and choose who they pay?

Answer 1

Yes this practise is unfair, but it happens all the time. Another thing you could do (but this will cause a few problems with the contractor) is if he hasn't paid by a due date you could add a small amount of interest to the debt so he doesn't think it is ok to do the same again. But with our economy as it is at the moment a lot of people are begging off Peter to pay Paul because no one has any money. So sadly the people who have looked after themselves and been careful (which you obviously have done) cop the consequences of not getting paid. My BIL had his own roofing business and he was constantly either not being paid or people were withholding certain portions due to mis quotes (which were not mis quoted, people got a silly idea in their heads). He ended up going back to work for someone else in a Managerial position and is a whole lot happier.

I do not condone people not paying their bills, but I am just saying it happens and all too frequently. I would say to the contractor that regardless  of what your financial status is he still needs to settle his debts with in the allotted time.

Answer 2

It all comes down to the terms of your agreement with them.  Did you present them an invoice that (IN WRITING) indicated that you were to be payed immediately?

Answer 3

Do you have a contract with your contractor?  If not, one should be drawn up, on payment, work, etc.  That way if there are any problems and you need to take legal action, you will have something to back you up.  If your contractor feels that you don't really need the money anyway, who's to say he won't pull this stunt again on you?  That's just ridiculous of him to do, and more so to say!!  Give him a warning and tell him it better not happen again or you will find a new contractor, no matter what kind of relationship, business or otherwise you have with him, you have a business to run also!  Good luck!

P.S.  When are you due?

Answer 4

Yes it is unfair, but perhaps let it slide this time. Ensure the contractor pays within the timeframe s/he says. If you find that any other problems come up you will need to nip them in the bud your the contractor will think s/he can walk all over you.

Answer 5

It depends how reliant you are on that client. You could always sue them. If you think they are in financial difficulties, get in quick with a writ. Fair? What's fair? You can choose who you deal with.

Answer 6

Yes, that is absolutely unfair. Tell him that you want the money ASAP, no later than ______, and if he does not have it to you/the cheque does not clear by that time, file a suit in small claims court.

Yay, I spelled cheque the true way, not check as us dimwitted Americans spell it :D