DO NOT PAY SUBCONTRACTORS FOR WORK DONE

Sub-contractors beware!!! We have completed work for a business called SIKWEZA HOLDINGS in August as part of a contracting job they have with a school in Cosmo City, Gauteng. We completed the job within 6 days of receiving the 60% deposit on order and the school paid the contractor the remaining money on the 16th of September. Sikweza Holdings has still not paid us the full balance owed to us for work completed three months ago, even though they have received the payment in full. The "owner" has had constant excuses since then regarding paying us the remaining balance owed to us.

I want to warn you as I do not want this to happen to other small businesses. In our current climate what seems to only be a couple of thousands of rands can make or break a business. Furthermore, the school has advised they simply cannot assist as they paid him already, so we are out of pocket and have to take it up with him by ourselves.

The "owner" has the habit of advising every Friday that he is going to pay, but that has not been the case. I am 100% sure he would not be understanding if someone did not pay him for work completed, not mentioning being months late. As a sub-contractor our hands are tied, our only option being going to small claims court, but that will take another number of months. Sub-contracting is a standard practice in the Construction industry, but paying suppliers timeously seems to be not as much. I have done some reading on the matter and apparently 70% of sub-contractors do not get paid for work done. Shocking.

I will take it upon myself to warn other individuals and companies to think twice before engaging with this company. Small businesses are abused way too often and it is sad. It has affected our cashflow, our business, our own family and our employees and their families and I am sure there are other businesses that have suffered and may suffer the same fate because of non-paying customers.