Sub Contractor- Cannot get money from Contractor!!!!

dori2o

My brother is a plumbing and Heating Engineer who does work for British Gas on a sub contract basis.

They have a policy of making their subbies wait 28 days from date of submitting their invoice to when the money for the work completed is paid.

However, My Brother has not had any money off them for 9 weeks, despite having at least 1 BG job per week, so should in theory have 1 payment per week.

He doesn't have a lot of private work atm due to the time of year and now needs his money. He has contacted BG but as yet nothing going.

Does he simply write and threaten court action, or is their some other course of action he should take.

Sambucus_Nigra

Has he invoiced correctly each time?
Has he called their accounts dept to see if there is a problem?
When you say 'nothing going' what does that actually mean? What response has he had? Who did he talk to?

Hammyman

Firstly, the fact he works every week and gets paid every 28 days DOES NOT mean he should get money every week. One of my blue chip clients paid on 60 day terms. They had to be invoiced monthly and you were paid for that full month 60 days down the line.

Now on to business. Assuming he's done everything that Sambucus Nigra has outlined above, he needs to send a reminder and in that also needs to include a statement of accounts for that customer with a letter stating the account is due within 14 days.
Next he needs to wait 3 weeks and if its not paid, send a final reminder stating if its not paid within 7 days, court action will be taken.

ALL OF THESE NEED TO BE SENT BY RECORDED DELIVERY.

If it is still not then paid then its County Court and also claim reasonable costs as well as the outstanding account. If it goes that far, it doesn't mean he'll get his money - merely there is a court judgment saying he is owed it. If it still doesn't get paid then its back to court for a warrant for removal of goods and then instructing a bailiff to enforce it.

And yes, you do all the above even though its British Gas. A bailiff or two going round and seizing goods from Head Office would do some good.

I'm surprised he's not got much private work at the moment. A family friend of mine is rushed off his feet. I would say that the lack of work he has is more indicative of what happens when you put all your eggs in one basket subcontracting for someone like British-Gas so get bupkiss local reputation - the friend mentioned does no sub-contracting.

alunharford

Anybody you take to court isn't going to want any more work from you. It's an absolute last resort for a small business to take its largest client to court.

This is probably just bureaucracy. I'd start by phoning the accounts department and asking where they are in the process of paying you, whether the invoice has been approved etc. If one person can't tell you, ask their manager - repeat until you get somebody above the bureaucratic layers.

Hammyman

alunharford wrote: »

Anybody you take to court isn't going to want any more work from you.

As a business, I don't want customers who don't pay so its a win win.

Bamber19

Hammyman wrote: »

As a business, I don't want customers who don't pay so its a win win.

Indeed, no point in having a massive customer if they wont pay you

Caroline44

My one bit of advice when you initially phone their Accounts Dept is actually be as friendly as you can with the person you're speaking to. Get their name and keep using it when your talking to them. Basically explain that you need the money to keep your business going (anything to get their sympathy really). Keep phoning everyday if you need to and always speak to the same person if you can and always keep it friendly. I work in the Accs Dept of a large company and definitely believe when a Subcontractor etc comes on chasing money the nice/pleasant ones that we get to know and chat with always get paid first.

This of course may not work but it's worth a try before things take a turn for the worst and you have to fight to get every penny out of them.

Good Luck!

sharkie

dori2o wrote: »

He doesn't have a lot of private work atm due to the time of year and now needs his money. He has contacted BG but as yet nothing going.

Has he seen this post https://forums.moneysavingexpert.com/discussion/2911242

https://forums.moneysavingexpert.com/discussion/2911404


If people do not want heating engineers at one of the coldest times, when do they want them? One person on there said something along the lines that 'will be placed on a list and sometime in january is the earliest they can come out'

1984ReturnsForReal_2

Is it 28 days month end?

I doubt if its 28 days from invoice date.

28 days month end plus 7 days to do a payment run is pretty much a standard way of paying.