There are a few tactics you can use to make sure contractors pay you in a timely manner for the subcontracting work you do.
One step you can take is to do your research. According to Chron.com, you should look at reviews for each construction company before you commit to working as a subcontractor. Do customers consistently give them good reviews? Does the construction company have all the necessary licenses? Do they have a good track record of working with subcontractors? If a company has a history of nonpayment for subcontractors, you may want to pass on the job so you avoid problems down the road.
Establish a payment schedule
Having a clear schedule can ensure that you receive payment for your work. You may ask for a down payment before you start work. Additionally, you may ask the company to pay you after you complete certain phases of the project. In this situation, you would provide an invoice after completing a certain amount of work. You may also wait for payment before you begin the next stage. This strategy can help ensure that you get paid for all your work. If a contractor cannot or will not pay you, you can have a conversation about payment early in the process instead of once the whole project is complete.
Examine the contract
Your subcontracting contract will likely lay out the terms of your payment. Some contractors may state that they will pay you once they receive payment from the client. In this situation, you may not receive payment if the client does not pay. If you see this type of clause in the contract, speak to the contractor to see if you can change the clause.