Paying Contractor Bills

[cassa333]

Hi,

Just a point of interest here.

If a contractor does a job for you but doesn't send his invoice in for over a month do you have to pay it immediately just because they write on it due for payment immediately?

Or can you pay it within say 28 days?

Thanks

[fiction-factory]

Depends on what was agreed at the time the contract was agreed. But unless those were the agreed terms I don't see why a contractor should have to wait 28 days. He may well have had to pay for materials and maybe labour.

[Buenchico]

As F-F indicates, anything agreed between you and the contractor takes priority. Otherwise though, a payment only becomes 'late' after 30 days from your receipt of the invoice (or from the completion of the contracted work, if later).

[Retrochic]

Why would you not pay it immediately ? -the Contractor has had to pay his workers and more than likely materials. Why do you feel the need to make him wait for his money?

[Togo]

The contractor has already given you a months grace, pay them.

[paddywak]

Provided I'm satisfied with the work I always try to pay ASAP,as f-f says the guy may have bills to pay himself.When I first finished at the pit I did a bit of work for a small firm making garden ornaments.he showed me the books one day and he had loads of orders and loads of outstanding payments but fifteen people lost their jobs when he couldn't buy the materials to do the job even though he was owed thousands.I saw him a few months later and the recievers still hadn't been able to recover all he was owed.

[chrissa1]

Ideally, a contractor should invoice as soon as he has completed the job. However, if he's a sole trader he may only do his paperwork, monthly. He has effectively given his customer a month's credit, so it should be paid immediately.

When my late husband and I ran our own business, we invoiced straightaway through a factoring company which, although it meant we lost a % of the invoice value, it kept our cash flow ticking along, enabling us to pay wages and buy raw materials.

[murraymints]

I always pay on receipt..cash flow is vital for a small company..can make or break ..

[cassa333]

Payment is not a problem it just seems to me that the contractor demanding immediate payment when they take over a month to send an invoice is a bit much!

There was no real contract TBH. Some work needed doing and he said it would be 'about xxx' and that was it.

[Retrochic]

cassa -what do you men 'a bit much'? What an attitude to take! Small businesses often just do their Invoices monthly. Your job maybe was carried out at the beginning of the month so would not get Invoiced until the month later . Be thankful you've had the money in your account 4 weeks longer than you would have. FWIW 'Immediately' on an Invoice usually means within 28 days as you will not be issued with an 'Overdue' Invoice until the following month. Do the right thing and pay the Guy -he's done your work.

[Peter Pedant]

Hi Cassa have you chucked them out yet ? those tenants I mean

all those who have run businesses have said they would like to be paid immediately as Cash Flow is King

and if you are short of cash on the 3rd of the month ... then you will know what they mean.

The accountancy norm is 30d ( I have my exam on 16th ! ) but this is not backed up by legislation - I imagine the case law says within a reasonable time

if you are making a point to him the contractor then make it in another way

Oh it isnt like a rent contract/lease where if they dont pay on the due day you go around and give them hell ( in case they say, I havent paid my rent and nothing has happened so I will do it again ! )

[Peter Pedant]

chrissakes cassa
think tenant ( your ones and not mine )
and think what a pain it is not to pay bills
and then write the cheque !