Most contractors are in debt, is it because they have advanced all their money?

In today's society with inflated interests, the competition in all walks of life is very fierce, and it is becoming more and more difficult for all walks of life to do, especially in the construction industry. In particular, peasant Baotou workers, in the past, were generally nouveau riche with deep wealth and driving luxury cars, but at the same time, they were also synonymous with arrears of wages and debts of migrant workers, so why did they go into debt? I think there are mainly the following reasons:

First, although the construction industry is an explosive industry, due to the fierce competition in the construction industry, the profits are getting smaller and smaller, and the project has a relatively poor ability to resist risks. Contractor foreman.

Sometimes it's good to be able to grab a job to do, and even sometimes because of a temporary shortage of funds for the project, I will advance funds to work and do it hard; Sometimes, there is a need to compensate for safety accidents on the construction site, and even the money earned from the work is not enough to compensate, and if you are unlucky, you will be in debt.

Second, corruption and chaos in the field of construction and construction. Because there are more wolves and less meat, and there are fewer people to live, in this situation, there will be malicious competition, and some contractors will use shady means, such as bribery, in order to obtain the project. However, if flies don't bite seamless eggs, and if one person breaks the rules and breaks the balance, more people will follow suit and gradually develop this bad atmosphere.

Sometimes, for the greater good, the contractor will cut corners and make some tofu slag projects. However, when the project is obtained, it is often difficult for the contractor to get the project progress payment in time according to the contract.

They are often in a disadvantaged position in this process, especially if the project needs to be audited to get paid, then it will delay the project payment, as little as a year or more than three or five years. Therefore, it will cause the contractor to have difficulty in capital turnover, and he will be in debt for a while!

Although the industry is difficult, I still hope that everyone will have more social integrity, do not default on project payments, and do not default on migrant workers' wages, so that workers will be full of enthusiasm and the industry will become better and better!

The main thing is to advance money, and migrant workers will go to trouble with the contractor if they can't pay their wages, or even stay at the contractor's house. As a result, there are many contractors who sell houses and cars. Migrant workers only recognize the contract foreman.

Yes, in order to recruit more workers in the coming year, many contract foremen choose to advance their own money to pay wages to migrant workers, and throughout the process of the project, he will also advance part of his money into it for the purchase of materials or for other purposes.

It is because the money has been advanced, because Party A will not give money to the contractor at the beginning, and at this time, the contractor needs to advance the money himself.

The current economic and business environment is not good, and everyone is in debt.

What is spoken here is a language that has experience and justice, and others will only despise and ignore it.

I have to say that the pressure on people's lives now comes from the high housing prices on the one hand, and their salary income has not increased for a long time on the other hand.

I believe everyone has heard of such a sentence, that is, 3000 yuan can not find a migrant worker, can only find a college student, in fact, this sentence reflects 2 points, the first point is that the work that college students are doing now is likely to be not high, and the second point is that the income of migrant workers is indeed very considerable.

Then it is easy for us to think of a question, since the wages of migrant workers are very considerable, then their contract foremen are not richer, in fact, this was true in the past few years, but now it seems that the life of the contract foreman is not very good.

What's more, some people are simply in debt and even going bankrupt because of the project package, and they are not as good as the workers under their hands.

The first reason is that it is difficult to settle the project payment.

The second point is that you have to pay your own salary in advance.

So in the case that the project payment is difficult to settle, the wages of the workers are paid, you say that you don't pay some money during the New Year's holidays, and the children are about to start school, so you must spend some money as tuition, right? But the company's money has not come down, and you can only pay out of pocket at this time.

The third point is that you have to bear the responsibility if something happens.

Construction workers themselves belong to a high-risk profession, and many times it is inevitable to bump and bump on the construction site, but if something big happens, such as being seriously injured or killed, it must be claimed, and if the claim is made, usually the worker can only find his own contractor to solve this problem first.

And who is the contractor looking for? Sometimes he may not be able to find anyone, so he can only bear it himself, why is this? Because he took the contract from someone else, that is to say, it is likely that the contract clearly stipulates that he is fully responsible for the accident and has nothing to do with the company.

So in such a situation, the contractor had a difficult plan, and then he had to pay the workers wages, which were all paid out of his own pocket, and then if something big happened, it would be a return to the pre-liberation period.

Because most of the contractors are ordinary people, they do not have strong capital, and the project payment is completed and then completed, and the project payment is often delayed. A conscientious contractor will lend money to the workers first. Most of the contractors are making money, but they are temporarily in debt, and only the contractors who are unfinished and cannot pay the project money are really in debt.

In fact, many contractors are now advancing money to do the project, and then settle the settlement after the project is completed, so as to get the project money and then use it to repay the debt. In other words, when the project payment has not been received, the contractor actually has no money and is naturally in debt.

Because some contractors are in arrears of wages to migrant workers, they don't want to pay them to them, and they want to take the money for themselves, and some migrant workers urge them to pay their wages, but they don't listen, so they are in debt.

The reason why the contractor is in debt is because the superiors owe them a lot, and the reason why they are the leaders of the foremen is also very difficult to solve their debts.

The contractor is in debt because each project is paid until the end of the project, and any expenses during this period need to be borne by the contractor himself.

Because they are in debt, after they contract the project, some people will owe them money, so they can only owe money to the workers.

Because the real estate industry first borrows money from the bank to buy land, buys materials and sells capital while building, and the contractor also has to wait for the completion of the project to recover the cost, and the developer owes him money.

Legal analysis: It can be recovered through legal channels, and if the parties have an agreement on the advance and the interest on the advance, and the contractor requests the return of the advance and its interest in accordance with the agreement, the people's court shall support it, except for the part where the agreed interest calculation standard is higher than the interest rate of the same type of loan at the time of the advance or the interest rate of the loan market for the same period. If the parties have not agreed on the advance, it shall be handled in accordance with the arrears of the project.

Where the parties have not agreed on the interest on the advance, and the contractor requests payment of interest, the people's court will not support it.

Legal basis: Interpretation of the Supreme People's Court on Issues Concerning the Application of Law in the Trial of Cases Involving Disputes over Construction Contracts for Construction of Late Talc Projects (1) Article 25 Where the parties have an agreement on the advance and the interest on the advance, and the contractor requests the return of the advance and its interest in accordance with the agreement, the people's court shall support it, except for the part where the agreed interest calculation standard is higher than the interest rate of the same type of loan at the time of the advance or the interest rate quoted by the loan market for the same period. If the parties have no agreement on the advance, it shall be handled in accordance with the arrears of the project.

Where the parties have not agreed on the interest on the advance, and the contractor requests payment of interest, the people's court will not support it.

The contractor is in debt mainly because Party A owes money, whether it is a large project or a small project, the contractor has to advance his own funds, and the balance is not in place.

Most of the contractors have to advance their own money, to pay their own money to buy materials, pay workers' wages, although many workers are at the end of the year but also have to advance wages to live, and at the end of the year the contractor to find the contractor to get money is also very difficult, and may not even get the money, so it is also in debt.

There were some contractors who gave money to the juniors.

Introduction: In everyone's impression, the contractor is a nouveau riche with deep pockets, driving luxury cars, and going in and out of high-end entertainment venues, and at the same time, he is also synonymous with arrears of wages and debts for migrant workers. Why is there such a strong contrast?

1] The lack of social integrity leads to the "triangular debt" becoming more and more intense, and it is often difficult for the contractor to get the project progress payment in a timely manner in accordance with the contract, and the contractor is often in a weak position in the process of project transfer, especially if it is necessary to pass the audit, it will delay the project payment, less than one and a half years, and more than three or four or five years. If the project reserve funds are insufficient, it will lead to disputes and even legal proceedings in arrears of wages and materials for migrant workers.

2] The unspoken rules of engineering construction, the owner, the supervisor, the quality inspector, the security inspector and many other links need to be taken care of by the contractor, many of the projects themselves have meager profits and these necessary expenses increase the burden and economic pressure of the contractor, objectively speaking, such a project is not a loss is all right. You may ask if you don't make money and still be a hair, but there are some workers you have to support, some relationships you have to maintain, and at the same time, if you don't do it, it means that you will slowly get out of this circle.

3] Contractor foremen are often born as construction workers, who are generally not highly educated, have low literacy, and lack management knowledge and experience. The construction industry is a systematic project that requires fine management and overall arrangement, but it can generally be affected by factors such as affiliation or human affection, and the entry threshold for construction projects is not high.

Even so, why do we often think that the contractor is synonymous with the nouveau riche?

This has to start from the outbreak of the construction industry [1995 2010], when it was the spring of the construction industry, the entry threshold is low, the profit is high, as long as any project does not have major safety problems, it is basically a sure profit, the general environment at that time has created a group of daring, bold contractors, and obtained rich returns. is also because it is easy to make money, all of them are lavish, and together with the coal mine boss, they have become the first generation of local tyrants in the hearts of the people.

With the development and change of society, every industry has entered a period of adjustment, whether it is a contractor or a coal mine boss, only to adapt to the pace of continuous development of the times in order to achieve their own wealth dreams.

Of course, integrity is the cornerstone of society and people, whether you are in debt or in debt, first of all, to be a trustworthy person is the ladder of your success.

Because in the early stage of being a contractor, you need to borrow a lot of money to contract this project. And the contractor is very slow to make money.

This is because many contractors have undertaken a lot of projects and businesses, but the construction time under the project is too long, and there are many big bosses of enterprises who have not paid them, so they are in debt.

Because most of them can't get the full amount before contracting the project, and they also pay their own money when they pay the workers, they will have some debts.

If the project money cannot be paid, the wages of the workers must not be less. The kind-hearted loan pays the salary, the boss runs away, and the loan is repaid by himself. Can you not go into debt? Those with a black heart can make a fortune, especially in previous years.

Because as a contractor, his social network is very extensive, they will occasionally accompany Party A to eat, and occasionally accompany Party B to eat, so the expenses are very large, and often because the boss can not pay wages on time, most of the contractor will be in debt.

When it comes to the contractor, most people's impression is = wearing a "beer belly", carrying a small bag, wearing a big gold chain, holding a Huazi in his hand, driving a luxury car, walking around, a picture of wealth. But in real social life, with the overall weakness of the development of China's real estate industry, the life of the contractor is not easy, and even it is possible to be in debt!

Construction is profiteering, why is the contractor sad to live a good life?

To be honest, there is a saying in construction technology that "golden bridge, silver road, iron house". The project of the bridge and road is generally led by the first department, and the management ability is relatively standardized, and the enterprise may be in arrears, but it is generally not necessary to owe money for a long time! For a contractor, simply undertaking the project of "bridge and road" will not lead to a situation of heavy assets and liabilities!

For contractors, they are most afraid of taking on some real estate projects. All of this work was done very well 10 years ago, the house was easy to sell, and the funds were quickly returned. Even if margins are slightly thin, turnover is unlikely to be problematic.

But in the past two years, life has gotten worse and worse! The reasons for this, I personally believe that the main points are as follows:

The contractor is "angry" at both ends, first currying favor with Party A, and then enveloping the migrant workers. Even if Party A is in arrears for a period of time, the contractor must pay the migrant workers' wages on time. Once he offends any party, the contractor will not have a good time.

After layers of subcontracting, the profit is pitiful. At present, whether it is building bridges, roads, or building houses in China, the projects that the contractor can undertake will basically be subcontracted by the enterprise several times. Every time you subcontract, you will be taken a part of the economic profit.

In the end, there is very little profit that can be left for Baotou workers, which is one of the reasons why many of our "tofu slag" engineering technologies will appear.

"Clear package" does not make money, "half package" has no oil and water, and "full package" is difficult to recover. Needless to say, the contractor does not pack the material (clear the package), and the contractor can only squeeze the migrant workers, how much profit can he have; The profit of the contractor is quite a lot, but the intermediate business involves too many links, which can easily lead to problems and arrears of funds to you.

This kind of work, people who are not high-tech and have a flexible brain, can do it. The threshold is low, the market competition is too large, the distance is serious, and the contracted project is not profitable has also become the consensus of many contractors.

In short, after subcontracting, there is too much competition in the same industry, resulting in serious profit compression, and then the impact of the industry recession will affect the capital turnover, which are the reasons for the debt of the contractor!