Delay in payment..is it expected? - First time contractor

[BoltonLad]

First time contractor. Forced into Contracting due to current economic condition. Can't be choosy in the type of job. ( before someone makes fun, it is better to start with some background info)

It is going to be nearly two months. As per contract, the invoice should have been cleared by this time. 2 weeks delay. I had worked and spent a lot of money without even getting 1p out of it. The contract rate is 'well below the market rate'

Is the delay normal and expected in contracting world. No response for any follow up mails.If it is expected how long to wait (normal delay)

Thanks in advance.
BoltonLad.

[uky kozak]

What does the agency say? - You ask them first not here....

[Hex]

I don't think you can say is is unexpected. There are, however, a number of threads on here in recent months discussing non-payment issues.

You need to find out why they're not paying. Ring them up. You are perfectly within your rights to ask them why they have not paid within the terms of the contract. Be calm but forceful.

There are a number of legislative steps you can take if the problem carries on, but for now you need to ring them up and find out why they haven't paid.

[RichardCranium]

Is the delay normal and expected in contracting world.

Yes and no.

Yes, it is normal for them to try it on with a first-timer and see how long they can get away with not paying you. Yes, cock-ups happen and your contract might be in the wrong person's in-tray or failed wrongly and you will never be paid unless you chase the cause.


No, it is not expected nor acceptable. Agencies do three things: find leads, email CVs and provide a factoring service to contractors. The latter accounts for them taking 10% to 40% of the money. If they are not providing the factoring service, they are taking the piss.


Do a search on here for the one word 'payontime' and read the threads that come up.

[singhr]

I wouldn't be sleeping easy with some flaky agency holding 2 months of my wedge - they do have a habit of going bust. Maybe ask the client if they have paid agency yet but hastle the hell out of your agent and its accounts department until the money starts flowing.

[RichardCranium]

I wouldn't be sleeping easy with some flaky agency holding 2 months of my wedge - they do have a habit of going bust.

But that only ever happens in a recession.

So be afraid.

Maybe ask the client if they have paid agency yet but hassle the hell out of your agent and its accounts department until the money starts flowing.

But be aware that unless there is a clause about that in the contract (which is rare), that is not a valid excuse from the agency.

[BoltonLad]

Thank you for all the replies.

The contract is with the employer(thru my limited company). Not thru any agencies. The employer knew that I am a first time contractor. Whenever I ring the HR and finance, constant reply, 'will clear in a day or two'. Other contractors
thru agencies said that they got their payment cleared.

[stillooking]

Thank you for all the replies.

The contract is with the employer(thru my limited company). Not thru any agencies. The employer knew that I am a first time contractor. Whenever I ring the HR and finance, constant reply, 'will clear in a day or two'. Other contractors
thru agencies said that they got their payment cleared.

--------
I guess you should have mentioned yrs is a std. b2b relationship on the first post; you're probably aware many(but not all) contractors go thru an agency.

In a way you're in a good position contracting directly, in another way it's not so good - you are exposed to slow payment from the principal client who more than probably regards yr invoice like any other invoice and pays on their normal terms, which is often 30 days nma (often 60 days), the govt have been trying to influence big business's to pay up on time but I don't know how much this is succeeding. BTW is the client a small company or a large co?

[RichardCranium]

The contract is with the employer (through my limited company). Not through any agencies.

What does the contract say about payment?

[BoltonLad]

Invoice should be sent by 1st of calender month and will take 2 weeks time to clear.