how can i continue to pay a subcontractor

2 weeks ago

im a small construction business i have 1 main contractor who subbs to me are /is any help for me to continue to pay him ?

Senior Legal Associate Levelset
202 reviews

It can be hard to pay your normal subs without money coming in. If projects aren’t ongoing, and if the sub isn’t actually performing work, then continuing to pay them may not be necessary. Though, it’d be important to review your contract to make sure you fully understand your obligations and their rights.

Even if continuing to pay isn’t required – if you’ve got the cash on hand, and if you’re confident that you’ll be able to weather the storm while also paying your sub, then you could continue to make payments. Or, if you feel it’s necessary, you may be able to obtain funding with an SBA loan – honestly, they may be able to do that as well, if they’re hurting from the lack of work.

But, before making any decisions, it’d be wise to review the contract then discuss the matter with the subcontractor. Having an open and honest conversation about the state of your businesses in the face of this COVID-19 outbreak should be healthy – and you may be able to find some sort of arrangement that works for both of you.

Additional coronavirus content

Additionally, these resources might be helpful in light of current events.

– Coronavirus & Construction Cash Flow
– How Contractors Can Survive Coronavirus: Get Paid, Not Burned
– 9 Construction Lawyers Give Scary Advice for Contractors to Survive Coronavirus

Disclaimer: The information presented here is not legal advice and should not be construed as such. Rather, this content is provided for informational purposes. Do not act on this information as if it is advice. Further, this post does not create any attorney-client relationship. If you do need legal advice, seek the help of a local attorney.
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