As many of you who follow this blog or are in our LinkedIn Group will already know, in addition to being MD of StreetwiseSubbie.com Ltd, I am still very active on commercial and contractual matters as Ashmore Consulting.
One of the very first things I do when clients call me with a problem, is to ask who they are working for. Very often, it turns out they don’t actually know!
That might sound ridiculous, but it is true in the sense that they might have a name, but they don’t know whether or not it is a limited company or even exactly which company it is. Sometimes, as happened today the poor guy who rang had no idea that he was actually working for a German company, and had little chance of recovering what he was owed.
Now that guy was at the labour only end of the scale, but I have seen the problem manifest itself in regard to contracts worth hundreds of thousands of pounds!
So where am I going with all of this? Our LinkedIn Group is a great place to start “finding out”, but I would encourage you to subscribe to a credit reference agency such as Top Service. They are experts in construction and that’s why StreetwiseSubbie have teamed up with them to offer you a discount on their service. You can find out more at Check Out Top Service.
So, please, please, please, find out about who you are intending to work for, before it’s too late!
And if the contract contains a “we don’t pay if the Employer is insolvent” clause then you also need to know that the Employer is good for the money, or get that clause struck out.
I have just been reviewing ISG’s terms for a client, and here’s what their terms say;
“…if the Employer is insolvent…ISG shall not be obliged to make any further payment to the Sub-Contractor of any amount which is due or may become due to the Sub-Contractor unless ISG has received payment in respect thereof from the Employer and then only to the extent such receipt relates to the Works”
Check out the Employer or kick out the clause!
Failing to check could cost you your business…