This is one of the reasons I got out of being a plastering subcontractor. Most of my builders where small builders and about 10 of them. 2 paid on completion and the others would not pay a penny until they had been paid.
So, I was to supply labour at then £2-6 a day profit, pay the labour on completion or Friday whichever came first, take full responsibility for their work and supply materials at cost for 3 of them the others where labour only. The cheek of it! Get some plasterer to finance the job for them at virtual cost!
I had a builder in 84-5 give me a job when the miners where on strike and so was the local Council. A grant job. He said there was 2 months labour only work but as it was all grant, until the Council pays there will be no money. well, there was no work anywhere so I took it on. In the 7 weeks it took me 4 days work came in elsewhere and on the 8th week he went bust!
I took on a solicitor and took him to court for money owed and legal costs. I won the ccj and as he was Ltd I then was told he had nothing in assets so I won my day in court, did the job for nothing and paid at the time £350 (about 8 days work) in legal costs. The solicitor knew he had nothing from the start so took me for a mug as well.
During the 80,s I got took about twice a year for in todays money from several hundred to a grand. Take that off working at cost and you are at a loss.
It just wasn,t business so I jacked it in and went domestic rendering instead. Domestic usually pays ok, on time but it is seasonal and dependent on the weather. Would still rather do domestic than go back to the contracting. Unless there is a profit, a reward over risks then I am out of it.
As Owls says, with the help of the internet you can now suss out Ltd Co,s. The young Co,s and the poor record ones leave alone or at least be labour only.
Towards the end of my contracting days builders would say "how much" and I would say before I give you a price how quick do you pay as I don,t give any credit. They all took nark and told me to take a hike with that attitude! Well that was a deal in my mind. Find some other idiot I thought.
At the time I thought it only happened to me but it is still happening. Ask yourself this? You take on these builders jobs and give them credit although you might not intend to. Have you ever took on a subby plasterer, had him do the job and then simply say "I will pay you when they pay me" and got away with it? Don,t think so, so why should the builders get away with it. Sod em!