Late payments

Here in the little old british colony of new zealand, people by law can pay on the 20th of the next month, something im never enjoyed!!

is there any payment standards in the states?

The customer must pay you on the 20th of the next month by law? :shock:

not must, can…20th of the next month at the latest

:shock:

All I can say is… Revolutionary War

At least you’re getting paid. Here in Ohio we have ministors filing bankruptcy a week after we put their roof on! Did I mention the insurance company paid for it in the first place. There aren’t enough laws to protect contractors.

nah, i love me british blood toooo much :stuck_out_tongue:

DUR, are you refering to the CCA ? (Construction Contracts Act 2002).
The CCA says that you are entitled to be paid " 20 working days" after submitting your Invoice for the work. Usually that falls around the 20th of the month following if you submit your bill near the end of the month. What the law is saying is 4 weeks later (ie 4 x 5 working days)
I’ve tested a lot builders on roof jobs I have done for them, by submitting my Invocie right after completing the work say on the 11th of the month, and technically they should pay by the 11th of the next month, but despite the Law they will still pay around the 20th anyway.
One regular guy I do work for claimed that if every subbie did that he would be writing cheques out constantly throughout he month. As you will likely know most NZ builders survive month to month, they don’t really have any finance behind them.

The CCA law is basically toothless, unless they are real late, like a few months late and you take them to the tribunal, then 99% of the time the CCA is your friend.

Keep in mind you have to put on your quotes/terms and conditions that the CCA applies, otherwise you are at their mercy and whatever termsd and conditions thye have arranged with their customer apply to you too.

There are a lot of builders we won’t work for again, just because they are slow payers, some use you as a bank to fund their projects, F that.

To true, cheers for the advise :slight_smile:

and thats exactly what i got from a builder, i would be writing checks out constantly every day. Personally i think its a croke

Writing checks is a very large part of a General Contractors job.
Maybe they just need to exercise their check writing hand more so it stays in shape.

To true axiom :mrgreen:

We seemed to have been having a good run lately since we put our bank account number on the invoice so that they could pay on line through the Internet.
At least they seem to actually arrive on the 20th, and with the banks co-operation you can use the money right away ( ie not have to wait the 5 days clearance)

You always get some stragglers though.