Unpaid Invoice

[NetContractor]

Does anyone know where I stand.

I worked for a software house as a contractor June 2011 - June 2012. At the start of the contract I requested a signed contract from the client. I submitted a contract to them which I got from the PCG, but they never signed it. However they continued to pay my invoices and accept my timesheets each month.

I appreciate that I should have been more forceful and insisted on a signed contract. However, each month the timesheets where authorized, invoiced, and paid.

During the contract, we deployed to a large client in London. The Clients UAT infrastructure was different to that which we were deploying in development, and there where identified performance issues. The consultancy recognized this but put performance testing off until we got into a production environment.

Several contractors came and went from the project; each one had trouble getting the final invoice paid. I thought I had a good relationship with the client.

I was taken off the project with 4 hours notice, after which I submitted my final timesheet and invoice. The manager authorized the invoice but the director failed to pay it. When it was overdue I queried the payment and got told that there were performance issues.

I answered some of their questions, but each one brought more questions from them. In the end I offered to help them further AFTER payment of the invoice.

The invoice is now 3 weeks OVERDUE. They have paid nearly 20% last week, but still have over £6000 outstanding.

I have informed them that I own all rights to my code until the invoice is paid in full, and that if they fail to pay the invoice I will have to inform the end client that the software is not fully licenced as the consultancy have failed to pay for it.

It looks like the consultancy is trying to withhold my invoicie (which was for development work) until I fix their performance issues (for free).

Does anyone know the legal standing on any of this?

Thanks.

[moggy]

has this exact question been asked just recently? 4 hours notice owning of the code until paid...?

[eek]

has this exact question been asked just recently? 4 hours notice owning of the code until paid...?

Yes by the same original OP here

[stek]

Isnt the code normally owned by clientco, since it's done on their site, with their equipment? I'm not a coder, but I'm sure all the contracts I've had any intellectual property is owned by clientco...

[NetContractor]

Sorry....I did ask the question before, but didnt fully explain, so just started a new thread.

All MY code was produced using MY hardware and Development software. It was tested on my clients site, and deployed by ME to their client. My companies standard terms of engagement (barring a seperate contract) state that all IP is mine until the work is paid for.

[northernladuk]

Sorry....I did ask the question before, but didnt fully explain, so just started a new thread.

All MY code was produced using MY hardware and Development software. It was tested on my clients site, and deployed by ME to their client. My companies standard terms of engagement (barring a seperate contract) state that all IP is mine until the work is paid for.

Did the client sign your terms of engagement? Have you read your contract in detail to see if it is covered there?

[Sockpuppet]

You could argue by letting you continue they've accepted the terms of the contract.

[BlasterBates]

Fairly simple of process of sending them reminders for failing to pay the invoice and threatening to take them to court. I wouldn't bring the licencing into it, just an unnceessary complication especially if they say they're not going to use it. Best just push for payment not return of goods, that will do you no good whatsoever.

[SueEllen]

You can either take them to court or get a debt collector to pursue them after you have sent out your late invoice letters and warning letters.

Make sure from now on any communications you have with them over the "problems" are in writing. Do not engage with them on the phone.

Some companies/people are very good at playing the court system, so you need to decide for yourself whether using a debt collector would be better.

There is a debt collector guy who posts on here from Safe Collections. Do a search and PM him.

[Safe Collections]

You can either take them to court or get a debt collector to pursue them after you have sent out your late invoice letters and warning letters.

Make sure from now on any communications you have with them over the "problems" are in writing. Do not engage with them on the phone.

Very sound advice for anyone with a disputed invoice, always in writing, never, ever over the phone! If it comes down to court action you will need to present the discussions as evidence.

There is a debt collector guy who posts on here from Safe Collections. Do a search and PM him.

That's us

Bottom line, you still have an agreement even without a signed contract. Previous payments also help reinforce the contractual ties between the parties as would any discussion around the engagement conducted by email prior to commencement.

What you do not have without a contract is any agreed route to the resolution of any issues, be they around the work itself, ownership of intellectual property or payment.

You could argue by letting you continue they've accepted the terms of the contract.

You could try this, but it is extremely unlikely to yield any results. Contracts need signatures. Without a signature a contract is worthless.

The one line in your post that really concerns us is:

Several contractors came and went from the project; each one had trouble getting the final invoice paid.

We would wager that if you spoke to these other contractors, each one will have a similar story. Some "issue" with the work provided that meant the final invoice was either unpaid or heavily discounted.

It sounds to us like the company in question makes a habit out of withholding final payments and creating spurious disputes. The problem is without a contract you may be left with the choice of settling for less or risking more in legal action.

You can find a selection of our template letters on ContractorUK here just edit the text to fit your needs.