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Client in liquidation

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    #11
    Originally posted by ittony View Post
    Thanks. Yes, these are sites which I've developed for their clients. One of which the development itself is substantially unpaid for. Whether that end client has paid my client for the work or not, I don't know.
    This is a definite path for you to go down. If they've not paid your client, see if you can stop that from happening and divert the payment your way. Has the development work you've done been handed over or still in progress? If this is development work still in progress, you've got a bit of leverage with them.

    You'll also be wanting to check your contract. ie. at what point does work/IP transfer. eg, At point of timesheet signing, at time of payment from the end client to your client, at time of payment to you etc. You want to find out who legally owns the work that has not been paid for. If you still own it, you have some more leverage with the end client.
    Last edited by Paralytic; 2 September 2019, 14:39.

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      #12
      Originally posted by Paralytic View Post
      This is a definite path for you to go down. If they've not paid your client, see if you can stop that from happening and divert the payment your way. Has the development work you've done been handed over or still in progress? If this is development work still in progress, you've got a bit of leverage with them.

      You'll also be wanting to check your contract. ie. at what point does work/IP transfer. eg, At point of timesheet signing, at time of payment from the end client to your client, at time of payment to you etc. You want to find out who legally owns the work that has not been paid for. If you still own it, you have some more leverage with the end client.
      The site is complete and live, although I have sole access to the source code and database. I wouldn't want to do wrong by the end client if they have fully paid their due mind. Not sure how I'd find that out.

      There are no contracts, only emailed or verbal requirements, estimates and invoices. I'm aware this sounds ridiculous but it has always ticked along quite nicely in this fashion, until now. It's also pretty much the way it operates with my other clients.

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        #13
        Originally posted by Paralytic View Post
        This is a definite path for you to go down. If they've not paid your client, see if you can stop that from happening and divert the payment your way. Has the development work you've done been handed over or still in progress? If this is development work still in progress, you've got a bit of leverage with them.
        Good luck with that. Anything the client's client owes is an asset of the client's, and since there aren't enough assets to go around the liquidators won't let it get away.

        If it hasn't been completed and invoiced yet then maybe you can pull something off. Don't count on it.

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          #14
          Originally posted by ittony View Post
          I'm aware this sounds ridiculous but it has always ticked along quite nicely in this fashion, until now. It's also pretty much the way it operates with my other clients.
          Always does, until it doesn't.
          'CUK forum personality of 2011 - Winner - Yes really!!!!

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            #15
            Originally posted by ittony View Post
            Thanks. Yes, these are sites which I've developed for their clients. One of which the development itself is substantially unpaid for. Whether that end client has paid my client for the work or not, I don't know.
            Down tools and focus your efforts else where. I would make payment terms cash up front due to a change in credit risk. As for the live sites how is support/hosting paid for these? You may still get paid for this if it keeps revenue coming in for the client entering liquidation. I would turn them off and make it the liquidators problem or reach out to the client and go direct, if there are no contracts I can't see what would stop you.
            Last edited by BlueSharp; 2 September 2019, 15:24.
            Make Mercia Great Again!

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              #16
              Yes you can submit further claims, perhaps send in the invoice with an explanation.

              Unfortunately it is highly unlikely you will get anything. The company has gone into liquidation because it has no money and huge debts, what little is available will be barely enough to pay off the administrators to wind down the company.
              I'm alright Jack

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                #17
                Contractor mate of mine was in the same position a few years ago. He agreed with the liquidators that he would do the office clearance for free and more than made his debt back on selling the furniture on.

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