None Paying Client

[BooBoo]

Another none paying thread.. though perhaps circumstances that don't follow the usual pattern.

Took on a fixed term fixed price contract, payment on sign off (I know!!) Via a recruiter, for a software company (invoice direct), who has an end client.

Few months later, after submitting some invoices (As the original scope of work is finished) only a few have been paid, the rest are now well overdue. The software company (My Client) still requires work in order to get paid on completion by end client (I assume) Nothing major, but its still a fair few days

Repeated promises of establishing a monthly payment plan but nothing has happened yet, often emails or calls returned late or promises missed, muchly with the same information.. Its gone on too long, and I'm at a bit of a loss what to do. I guess my options are

- Stop all work (Would this leave me exposed in any way? It's a pretty loose contract and the end date has passed.. Would it be prudent to terminate the contract in writing first)

- Contact the end client direct to continue the work (I'd quite like to see the system released one way or another)

- Just carry on working and hoping

Anyone got any advice? Happy to give a bit more info for specifics, though obviously I should remain quite general for confidentiality reasons! Or perhaps there's a service I can consult for advice?

[Boney M]

Anyone else not been paid that you know of? No reason for them not to have paid the invoices based on what you have said.

Are they a big client co? Sound like a small one from what you say.

Maybe give safecollections a member on here a shout or go via their website. They would probably have heard if there are previous issues with them

[BooBoo]

AFAIK nobody is getting paid, the reason for non payment is financial difficulties.. fairly big client with a massive end client

[borderreiver]

Well, if you want to work for free, that's your business. As you have tried negotiation with your client, I would argue that the time for discussion is over. What you should be doing is:

1. Stop work immediately
2. Start the dunning process (lots of threads on this on this site)
3. Look for another gig.

You are not in breach of contract (presumably - unless your contract is very weird!!). Your client is.

[BooBoo]

Its a remote contract and have plenty of other things on. Have been having auto reminders going out too.. maybe need to make them a little less polite soon!

End client has no idea software company is having issues.. nor that they are basically staffed by contractors.. although im sure they must be wondering why productivity has dropped by 99%! My worry about approaching end client therefore is confidentiality. But I suspect they have not paid any final payments so will still be in need of software and have remaining budget!

Recruiter also doesnt seem to be interested in getting involved

[SueEllen]

Its a remote contract and have plenty of other things on. Have been having auto reminders going out too.. maybe need to make them a little less polite soon!

End client has no idea software company is having issues.. nor that they are basically staffed by contractors.. although im sure they must be wondering why productivity has dropped by 99%! My worry about approaching end client therefore is confidentiality. But I suspect they have not paid any final payments so will still be in need of software and have remaining budget!

Recruiter also doesnt seem to be interested in getting involved

Stop work and start chasing.

First chase your client make it clear you will start work again when paid. Only if they still don't pay you and it's debt collector bound contact their client and apologise for not doing the product and explain why.

[BooBoo]

Thanks Again, Have stopped work today.

They say they are obtaining finance to resolve.. but want me to agree to a 12 month payment plan for the outstanding invoices.. doesnt seem to add up.. if they got finance surely they wouldnt need the 12 months!

[tractor]

...

Thanks Again, Have stopped work today.

They say they are obtaining finance to resolve.. but want me to agree to a 12 month payment plan for the outstanding invoices.. doesnt seem to add up.. if they got finance surely they wouldnt need the 12 months!

Depends how much they owe to other organisations and what your priority is over theirs. If you are way down the pecking order, you will get shafted before the rest. You might want to check your contract and see what it says about 'entering into arrangements' and acts of bankruptcy or administration.

[TheCyclingProgrammer]

Thanks Again, Have stopped work today.

They say they are obtaining finance to resolve.. but want me to agree to a 12 month payment plan for the outstanding invoices.. doesnt seem to add up.. if they got finance surely they wouldnt need the 12 months!

12 months is a lot of credit to extend to somebody who doesn't sound very credit-worthy.

If I thought it would increase the chance of me getting paid, I'd *possibly* consider a 3 month payment plan at most. 12 months is taking the piss. Have you credit checked your client?

If you feel its just a delaying tactic, then I'd reject the proposal outright and insist you are paid what you are owed by X date and start charging them interest after that. Is the amount owed under the threshold for small claims?

[BooBoo]

12 months is a lot of credit to extend to somebody who doesn't sound very credit-worthy.

If I thought it would increase the chance of me getting paid, I'd *possibly* consider a 3 month payment plan at most. 12 months is taking the piss. Have you credit checked your client?

That's a good point actually, I didn't really see it like that (As in, providing credit) I've just sent off for a credit check on them.

Its above the small claims limit.

Did anyone have any advice on whether I should terminate the contract formally (Or at least formally agree its been breached) before I break a few rules in it myself (Stop Work etc)