Last year I had a bad run with 2 companies. It would be interesting to know how many sub contractors are robbed of their money by main contractors and their customers.
People say you should get your T crossed and i dotted in a contract document. Then get a lawyer. Yeah right, if you are a sub contractor or even a small contractor you will know this is a load horse shyt. I have been doing this for 25 years now and I can tell you from experience, very little money is collected in this manner. The cost to take someone to court over R50 000 is just not worth the time and money wasted. I believe there should be more mafia style debt collecting, it works.
One was a Cape town company which supplies and installs stainless steel tanks for the food industry. They did a job for a well know cake supplier in Durban north. Man did i battled to get my money out of these people. The two of them going at each other and over who is responsible for paying me. 6 months later i finally got paid, it turns out the cake supplier was suppose to pay some and the tank supplier was suppose to pay part of it. I just wish i had done my homework properly and not rushed in to assist, because the tank supplier was 6 months behind and being sued by the cake supplier. What a mess. I finally got my money at the end of last year. The cake company is still suing the tank company for losses.
The second one was also a contractor who was running way behind on a holiday home for a well know BMW franchise owner in JHB. The contractor was running way behind schedule, he claims it was the owner was changing things all the time. Cut a long story short, I hear the BMW franchise owner was in a bit of a squeeze with finances so it seems he was taking advantage of the contractor taking so long used that as an excuse to get out of paying the outstanding balance of around R100 000. At the same time taken a small plumbing company to the cleaners and myself the electrical contractor. What gets me is all the bullshyt. It becomes hard to figue out who is the bigger bullshyter. The BMW franchise owner the main contractor.
Let this thread be a lesson for all small contractors and sub contractor, make sure you ask for a huge deposit and collect when the progress payment is due. If the contractor or customer doesnt pay walk off site. You will be better off in the long run.
Us little guys need to help each to prevent these payment dodgers from just going to the next small contractor, then to the next. It seems twitter would be an effective fast platform to name and shame these bullies who steal our hard money.
I am so tired of being ripped off.