Contractors are the Worst Pay Masters
What methods, the contractors use to delay and drag on your payment, pl. list down
Some of the Excuses they would mention are:
1. The payment is not yet received from the main party, even if that had.
2. The boss is on vacation outside, most of the bosses remain in hiding.
3. Your invoice did not reach from the site
4. You did not submit the required papers with your invoice
5. Your invoice is wrong, pl. resubmit
6. Our huge payments are held up, and we are waiting for.
7. We have to pay wages first to our workers.
8. Your work done is not up to the mark, it needs correction
Someone should ask them, why they have opened a contracting company with no base capital, no reserve, no cash flow management and no bank facility.
Unfortunately, most of the contractors entice the sub contractors to start the work, on the promise to pay them quickly but after three/four months of work, they would not, thus forcing the sub contractor to eject out of work and then paying them by monthly installments like a bank loan.
The other small contractors who are abundantly available, would also be framed on the same lines.
Unfortunately none is there to regulate this malpractice and the contractors are continuing with this bad practice of grabing and using the monies of their sub contractors, suppliers, vendors and the workers.
Equin0x: "Receive complaints for non payment covering a period of 6 months and over?" How do you expect a worker to live during such a period of time? Beg. borrow or steal? Eat grass or inhale just oxygen?
There is no doubt that workers must be paid as soon as possible, but so is the case for the sub contractors who too mostly do the work on labor charge basis, their laborers too have to be paid off at priority.
The fact is that almost all the contractors have insufficient capital base, which forces them to grab and use the monies of others, whether those are workers, suppliers or sub contractors, as a consequence everyone working at the lower level of ladder has to suffer massively.
There is a need to increase the capital base limit of a contracting company from current Qar. 200k to Qar. 2.000 M so as to address this issue effectively.
There should also be a committee that could receive the complaints of non payment covering a period of 6 months and over.
Acchabaccha: remember .. Sticks and stones may break my bones but words ....
How about unwanted insults? Is everything "very holy" on your side of the fence?
The truth hurts.
There goes Wild Turkey once again ever so quick to bring in religion and use it to spew his hatred towards Muslims, Islam and an Islamic country.
And the Qur'an says: "the worker shall be paid before the sweat on his forehead has dried." So much for the 'Islamic' country Qatar!
WPS is good for workers, but it has further forced the companies to stop sub contractors payments and keep the money in reserve in order to pay the wages to their workers. while implementing WPS, the payment problem of contracting has not been addressed fully & holistically. There should have been a regulation to regulate the payments to sub contractors as well, that would have forced the contractors to raise either own capital, own funding or bank facilities and restrain from holding on/grabbing on the sub contractors monies.
WPS is a great idea but can only succeed if the authorities have the willpower to proscute companies and protect the worker
Also Applicable for most of the Consulting companies, who are completely relying on invoice payment from the clients. Often the employees had to bear the consequences of delayed salaries . Many of those have 3 or 4 months salaries partly paid.
Let us keep an eye on this new WPS and how effectively it will be enforced .
But the contractors are worst, visit any contracting office, and one can see many crying there on the front desk for payment.
With only Qar. 200k base capital, they are undertaking projects worth millions, how can they do so, without proper funding. They are leveraging it because there is absolutely no check on them.
1, 6 and 8 are usually true. Contractor's do start with a good capital and settlement plans for the projects, however, often their clients/customers don't end up keeping up to the pace of payment. Hence your 1 & 6 are valid. 8 is also valid as often sub-contractors just finish the job, but does not maintain the quality and standard quality procedures. This is just an observation.
This happens accross the board - not just contractors. It seems that many in the GCC don't feel obliged to pay on time for the work carried out. They would rather keep the money in the bank and earn more interest.