ᐅ Hiring Contractors with Financial Difficulties?

Yesterday, a subcontractor working with our tradesperson came to us and complained that his invoice had not yet been paid. He rents out excavators. He asked us for our tradesperson’s bank details, supposedly to issue a payment order to trace the account. (How is that supposed to work without a court ruling?)
We politely refused and asked for understanding. He left and now intends to take legal action.

My question: The tradesperson is generally very nice and hardworking. It doesn’t really surprise me that he is currently having financial difficulties. He has three children, his car was broken, and he also mentioned an expensive dental surgery. Moreover, he only does the work part-time. Otherwise, he is employed, and who knows how much of his salary he is currently receiving during the COVID-19 period?

We were just about to do another small project with him. But now we are uncertain. Should we encourage him to settle his invoices first, or is that none of our concern?

I would bring it up.
Nothing more.
You don’t even know what the story is about.

haydee schrieb:

I would bring it up.
Nothing more.
You don’t even know what the story is about.

Of course we will address it. But would you still place the next order now?

kaho674 schrieb:

Of course we will address that. But would you still place the next order now?

Well, why not? You’re not paying in advance. Payment is made after the work is completed, and that’s it. Apart from possible hassles, I don’t see much risk there.

What exactly is he supposed to do for you?

Do not pay in advance. That way, you avoid any risk.

kaho674 schrieb:

Supposedly to locate the account through a payment order. (How is that supposed to work without a court decision?)

This can be done without a “court decision” through a judicial dunning procedure.

matte1987 schrieb:

Well, why not? You’re not paying in advance. Payment after the work is done, simple as that. Apart from possible complications, I don’t see any major risk.

What exactly is he supposed to do for you?

Well, this would be the third project now. So far, we have always made a down payment (usually about a quarter of the contract value) – since he has to cover materials and equipment rentals upfront. The rest is paid upon completion. For larger amounts, there have sometimes been partial payments based on the progress. But in the end, everything was settled perfectly.

This time we want a small outdoor kitchen. For that, we need a small concrete slab with a partly paved area including frost protection, reinforcement, etc. So nothing big.