How To Make Sure You Get Paid As a Contractor
Contractors do work that is important, and much appreciated by their clients. But to make sure they can continue doing their work, they need to be sure they will get paid for it. We’re here to help, as we take a look into how contractors can ensure they get paid on time and in full.
Create a Payment Schedule
One of the first steps should be to create a payment schedule. By having a payment schedule in place, the contractor and their client will both know when payments are due, and when the work needs to be completed by. This helps to keep everyone on the same page, and eliminates any confusion that could lead to issues regarding payment.
Get It In Writing
After you have come to an agreement on payment terms and conditions, it should all be put in writing with both you, the contractor, and the client signing the document. A legal contract with the payment terms and schedule will help you receive payment in the event of a dispute. Make sure that the contract stipulates any additional fees or penalties that may be accrued if the payment schedule is not met. Additionally, it’s important to make sure that any written contracts use legal language and that each party understands exactly what they are signing.
Keep Track of Payment Records
It is essential to keep an accurate record of when payments have been received and when invoices have been sent. Receipts and invoice records are important if payment disputes happen, but they are also important to check in on if payments aren’t being received to make sure the client is following their side of the agreement. Having all of this information ready can make things a lot easier in the event of a dispute.
Legal Action
In the unfortunate event that payment is not made, contractors should be prepared to take legal action to protect themselves. Make sure to document each occurrence and every attempt to collect payment. This information can be useful when it’s time to take legal action by serving a lawsuit or small claims procedure. Before taking any legal action it is recommended to speak to an attorney to see what their advice is, and always make sure to work within the legal framework that’s in place for your area. Doing so will help protect your rights and make sure you receive what is rightfully yours.
Frequently Asked Questions
What kind of payment methods can I use?
Depending on your area and the contract you have, payments can can be made by cash, check, or through a digital payment system such as PayPal. It’s important to discuss with the client ahead of time what payment method they are comfortable with.
What should I do if a client refuses to pay?
If a client refuses to pay, you should first try to resolve the issue in a peaceful manner. If the client is not willing to communicate and fix the situation, it may be necessary to take legal action. Speak to an attorney in your area to make sure you are pursuing the correct measures based on your state or local laws.
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