How to get paid by subcontractor?

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  #1  
Old 01-01-11, 01:36 PM
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Question How to get paid by subcontractor?

My husband is a subcontractor and works for a company that sends out paychecks from another state.

The contractor he works for is here in Colorado, but keeps giving my husband the run around about getting paid. He tells him "the check will be here tomorrow" and the next week it's still not there.

He just keeps getting put off all the time and it's quite alot of money due for the work he has done.

How does he go about collecting his pay? He works on a 1099.

thank you
 
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  #2  
Old 01-01-11, 01:40 PM
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He may have to sue the sub he subs from to get his pay. Does he have any kind of contract with him? I don't know if it would do any good, but I'd contract the GC and let him know that the sub isn't paying his help. The GC might have some leverage.... or he may not want to be bothered, not his problem
 
  #3  
Old 01-04-11, 03:35 PM
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Question

We've gotten the run around from both the general contractor in AZ and the contractor here in CO.

They keep stalling and making excuses on work that should have been paid for back in mid Dec.

Do I file a complaint with the Dept. of Labor in both states against them both? They say that since they're subcontractors they can't really file a complaint with DOL, they need to take them to court instead.

We're not the only ones that this company has not paid for the work done in the full month of December. There are about 15 subcontractors looking for this contractor to pay up.

Someone also said this:


contact the IRS and SSA, make as much trouble for this person as possible.......
this could be a problem for the actual customer who is paying this sub-contractor and in reality paying you, they may be mis-classifying them so bring this to their attention, they may want to help you out.... it is possible that they are not aware of how you are being treated....... hopefully some pressure from both sides will help resolve this in your favor.....
you also need to let the customer know that until you are paid by the sub who has contracted you that no work will be done....

you have the option of going to the IRS now instead of later, do NOT threaten to do so, if you are going this route you can and should tell them but do NOT use it as a threat to try and coerce them into paying more quickly.....

I know that this happens alot with construction companies and alot just get let go for FAR more $. But, this has put alot of families in dire straights.


Advice?


Thank you!
 
  #4  
Old 01-05-11, 07:22 AM
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I would think that the only way the labor board or IRS would get involved is if the sub contractors are really hourly wage employees. Some contractors choose to pay their help with a 1099 so they won't be responsible for taxes or unemployment. Generally that is illegal.

Since there are multiple subs with payment issues, they might consider going together and hiring a lawyer and go from there.
 
  #5  
Old 01-05-11, 08:04 AM
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Much as creating another expense is not desired, I think a consultation with an attorney is in order
 
  #6  
Old 01-05-11, 08:24 AM
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As a sub, can you place a lien on the job site?

Bud
 
  #7  
Old 01-05-11, 10:51 AM
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Bud9051
As a sub, can you place a lien on the job site?

Bud

I was thinking that, too, but can't only contractors do that? The ones that contract to do the job?
 
  #8  
Old 01-05-11, 11:00 AM
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but can't only contractors do that?
No, the person that hasn't been paid can do that.
 
  #9  
Old 01-05-11, 11:05 AM
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How do they do that?

Should the general contractor in the other state be told about this?
 
  #10  
Old 01-05-11, 11:19 AM
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Since States are different, start by calling your local courthouse, and they'll tell you where to start.

eta, probably wouldn't hurt to tell the GC because it might get him on the ball to get your husband his pay, but don't think he has to tell him.
 
  #11  
Old 01-05-11, 11:21 AM
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Thank you!!


We've all been trying to put the pressure on the GC out in AZ. He's been communicating back, but still....the subcontractors haven't seen any money out of it.
 
  #12  
Old 01-05-11, 11:25 AM
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A mechanic's lien is a standard way for contractors to attach their "money due" to the project. Banks will see that when they make disbursements and want all contractors paid before they issue the final mortgage. There is a nominal cost to filing a lien and a time limit. Other details you should confirm for your state/s. "Mechanic's lien" is the term I am familiar with and if you attach one, very common process, you will certainly get noticed. I would use a lawyer to be sure they are correct, but they ultimately get filed at the registry of deeds.

Bud
 
  #13  
Old 01-05-11, 11:27 AM
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And, it wouldn't do any good to let the GC in AZ know that...right?

Hoping to put pressure on them.
 
  #14  
Old 01-05-11, 11:36 AM
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I had edited my post to say it wouldn't hurt to let him know you're planning on doing this, because it might get him to get the pay owed to your husband, but you need to actually go thru with it, or it's just an empty threat.
 
  #15  
Old 01-05-11, 11:43 AM
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Exactly.


Just got a text from the contractor here that is holding all the sub's money and he said that they will all get their money in 7-14 days because he filed for Chapter 11 Bankruptcy.

And, he stated "SO STOP CALLING ME AND ** (general contractors)!!"


Fine...BUT, this could be another stall tactic and until we see the money in hand, we'll contact whomever we need to.
 
  #16  
Old 01-05-11, 11:48 AM
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That's good. Sounds like he will get paid, hopefully. Just in case, I thought of another tactic that often works and is less costly. You can pay a lawyer (usually $100) to write a letter of intent to place the lien.
 
  #17  
Old 01-05-11, 11:56 AM
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That is a good idea! I've done that in the past YEARS ago with a friend of mine that was an atty and it worked.

You are thee greatest DIY people!!
 
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