Managing subcontractors has been quite a challenge recently. I often find myself following up on deliverables, only to face payment delays from clients.
It makes me think about how to set up these connections better so that payments are timely and work is completed as expected.
I always ask for a deposit up front.
Payment delays with subcontractors will destroy your cash flow. Here’s what actually works:
Set terms upfront:
Build a simple process:
Track deliverables:
Be consistent with your process. Subcontractors respect clear boundaries way more than endless back-and-forth messages.
Learn from my mistakes - always vet your subs first. Call their references (actually call, don’t just ask for them). Check how they handle billing and whether they hit deadlines.
For payments, I make every sub invoice within 5 days of finishing work. No exceptions. They wait weeks to bill me? I wait weeks to pay them. Works every time.
Here’s what really saved me trouble - I stopped hiring subs who don’t have other steady clients. If you’re their only work, they get desperate and start cutting corners or bugging you for early payments.
Keep 2-3 backup subs for each job type. When someone starts missing deadlines or gets sloppy with invoices, you can swap them out without scrambling.
Most payment problems come from the client side, not the subs. Fix your client collection first.
Biggest mistake I see? No clear payment flow. I tell subs exactly when they’ll get paid based on when I collect. No surprises.
I also make them give me insurance certs and W9s before they start. Sounds basic but tons of people skip this.
Here’s a solid breakdown of the whole process:
One thing that really works - pay your reliable subs first when money comes in. They remember that and put your jobs ahead of others.
Keep subcontractor agreements simple but firm. I put payment terms right in the contract and stick to them no matter what.
The real trick is making sure clients pay you first. I never pay subs until I get paid by the client. Makes everything cleaner and protects your cash flow.
Also worth having a backup plan when subs don’t deliver on time.