Protect Your Pay: Lessons Every Subcontractor Must Learn
To many Contractors learn the hard way that doing the work isn’t enough - you also have to protect your self and your income.
The Idea of this Article began with a conversation with a close friend of mine who told me about an experience as a subcontractor where after completing a job, the person he was contracting his work for gave him the run around on his payments for Months, later forcing him to settle for much less than what was agreed upon and making him lose tens of thousands under the pretense of lost schedule time, work not done correctly, etc.
My friend, not having kept records of conversations and work completed had no ammunition to fight these claims and lost on a lot of money.
I too have been in this position many times, but here are the tips i have learned from being in business well over a decade now.
Fair Contracts - This one is very straight forward, DO NOT ever begin a job without a clear Contract that specifies at least, the scope of work, the billing and payment terms.
Always read the Contracts thoroughly and do not sign unless all Terms are understood and fair for both parties. You have every right to cross out unfair sections of a contract—most contractors will accept reasonable edits.
Always be willing to walk away. If the other Party refutes the change, weight the risks and leave the contract if necessary. A job not taken is much better than a job that will loose you money.
Progress Reports - We have been in positions where a client ran their job over budget and was looking to cut costs where they could, they begun to list parts of our job not done in accordance to plans or saying we had delayed them in some ways. Our response was an extensive report of the conversations had with their Superintendent and PM, and pictures of what work was done and when.
Paper Trails - We send emails of our progress completed to the PM of each project every week, along with pictures. We email any concern, anything not matching the plans, etc. Your emails are your records and your records are your protection when things go bad.
Use Emails to keep people accountable, if the PM is accusing you of delaying the project in any way but you have 3 emails asking for specific info to move forward, you have shown you are doing your work and he is delaying you. This is your ammo.
Lien’s - The law protects you as a contractor, if you have been performing work and not getting paid, it is your right to take legal action if needed.
The mention of a Lien is often enough to get things moving forward, a Lien is your protection against bullies and immoral people and companies.
Liens work differently in every state, is there a period to submit your lien? are you required to give warning before issuing one? be sure to learn the laws of your state and understand your rights.
In this industry, doing great work isn’t always enough—you need to protect yourself with smart practices and solid documentation. The unfortunate reality is that there are bad actors out there, and if you’re not proactive, you may end up paying the price. Clear contracts, written communication, photo records, and knowing your legal rights aren’t just good habits—they're your shield. Don’t let months of hard work go unpaid. Respect your craft enough to defend it.
Don’t leave your success to chance. Get expert support and coaching customized to your unique business needs—reach out now and let’s build something great together.