The "Pay When Paid" Trap
ClientPlastering and painting subcontractor
Recovered$13,500
DurationResolved with recovery costs
Full recovery of the outstanding balance plus recovery costs for the subcontractor.
The Situation
A plastering and painting subcontractor completed work on a high-spec residential build for a head contractor. The builder began missing payment deadlines, using the excuse that they hadn't yet been paid by the homeowner - a "pay when paid" tactic that puts subcontractors at risk. Eventually, payment stopped completely with a significant sum still owing.
The Outcome
We took action to recover the debt. We secured the full outstanding balance of roughly $13,500 for the subcontractor as well as recovery costs and interest for all overdue invoices.
We never found out whether the head contractor was paid. We didn’t need to.