Why You’re Always Waiting to Get Paid — and How to Fix It
The Reality
As a subcontractor, you probably know this feeling too well:
- You just wrapped up a project.
- You paid your crew.
- You bought materials out of pocket.
- And now… you’re waiting. Again.
30, 60, sometimes 90 days pass before a payment hits your account. Meanwhile, your truck needs maintenance, your rent’s due, and that next job? It’s coming fast — and it needs upfront capital.
Why This Happens
Let’s break it down:
- You’re financing the job — not just doing it.
- Most GCs wait to get paid first before they release your cut.
- You don’t have leverage because your terms are too soft, or worse, you never set them.
- You’re not tracking project milestones with clarity, which delays invoicing.
- You’re not separating personal from business cash flow, so you’re flying blind.
The Cost of Poor Cash Flow
- You can’t scale because every job is a gamble.
- You’re always stressed, even during good months.
- One slow-paying GC can destroy your financial runway.
What You Can Do About It
Here’s what the most successful subs do differently:
1. Set Clear Payment Terms (Before the First Nail Is Hit)
- Use contracts with milestones: 50% upfront, 25% at halfway, 25% at completion.
- Don’t accept “we’ll pay when we get paid.”
2. Invoice Immediately — Not Eventually
- The faster you invoice, the faster you get paid.
- Use software (like Subcrewz App) to automate this.
3. Track Your Costs in Real-Time
- Know your burn rate on labor and materials as you go.
- No surprises = more confidence when negotiating payments.
4. Charge Late Fees
- It’s not aggressive — it’s business.
- GCs respect subcontractors who respect themselves.
5. Build a Cushion
- Have at least 2–3 months of expenses in reserve.
- Easier said than done, but one big job or smart pricing can make it possible.
Assignment: Know Your Runway
- Look at your last 3 jobs. How long did it take to get paid?
- What percentage of the project value did you front in time and materials?
- Based on your current expenses, how many weeks can you survive without another check?
Write it down. Face the numbers. That’s where control begins.