Topic

Subcontractors & cash

The main contract cash position depends on the subcontract one. These guides cover subcontract payment dates, retention, set-off, back-to-back terms and what happens when a subcontractor is not paid or becomes insolvent.

14 guides

Subcontractors & cash

Ireland Cash flow forecasting on the Irish payment cycle Building a cash forecast around the payment claim date and the thirty day rule under the Construction Contracts Act 2013, so the money is where you expect it to be. 5 min read Subcontractors When a subcontractor goes under Insolvency partway through a package raises questions about payment, materials, retention and completing the work. The answers depend on what was in place before. 5 min read Subcontractors Setting off against a subcontractor Set-off is legitimate and routinely done badly. Without a valid pay less notice and a quantified basis, the deduction fails and the full sum falls due. 5 min read Subcontractors Back-to-back is not a magic phrase A subcontract described as back-to-back with the main contract usually is not, in the ways that matter. The gaps show up in payment dates, notices and delay. 5 min read Subcontractors CIS deductions on subcontractor payments: rate, base and timing 20% for verified registered subcontractors, 30% for unverified, 0% for gross payment status. The deduction comes off the labour element, not the whole payment. 7 min read Subcontractors Financial checks before you appoint Half an hour at Companies House before appointment is worth more than any amount of contract drafting afterwards. Most people do neither. 4 min read Subcontractors Claims from subcontractors, and passing them up A claim is only recoverable upstream if it fits the main contract too, and the two sets of provisions rarely align as neatly as assumed. 4 min read Subcontractors Holding a subcontractor to programme Everybody knows which package is late. Very few files contain what would actually be needed to do anything about it. 4 min read Subcontractors Valuing variations down the chain A variation instructed above does not become a subcontract variation automatically. The two accounts are separate and they routinely diverge. 4 min read Subcontractors Project bank accounts and fair payment Money in a ring-fenced account, released to everyone on the same date. It protects the supply chain and constrains the main contractor. 4 min read Subcontractors Contra charges and set-off: doing it so it survives A justified deduction made without the contractual mechanism is an unjustified deduction. Notice requirements, evidence, and why netting a contra charge inside a valuation is the wrong place. 6 min read Subcontractors Cash position: money in against money out, per job Profit and cash are different questions and a job can be healthy on one and dangerous on the other. What to measure, how often, and the four figures that tell you where a project stands. 6 min read UK Cash flow forecasting in QScope on a UK payment cycle QScope turns the valuation cycle and the final date for payment into a cash flow forecast, so a contractor sees when money lands, not just when it is earned. 6 min read Subcontractors When subcontract payment dates do not match the main contract Two contracts, two timetables, and a main contractor in between funding the difference. How the gap arises, how large it gets, and what can be done at procurement. 6 min read

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