That's why they have a progress payment system as part of the...

That's why they have a progress payment system as part of the contract.

If a subbie is not getting payed as per the agreed monthly payment schedule then they should stop work.

The main contactor is then in breach.

The subbie then has the right to walk away with limited exposure.

The trouble is they keep working under the premise they will get payed and hence are accepting liability and also going in deeper.

A contract administered correctly protects a sub contractor but need a good management team.