Agency Payment Issues

[ds100a]

Hi,

I’ve also been having problems with Pendragon IS.

I work at a bank, so a different site to 0mega. There’s another supplier between the agency and the client.

For the last six months or so, they’ve been a little slow paying, a week to 10 days late. Up to now, a chasing phone call or email to their accounts department resulted in payment within a week.

This month, my invoice payment is 3 weeks overdue, and I’m not getting any response from the accounts people.
I’m concerned that this could be non payment rather than late payment.

Where's the best place to get a credit check done?


Thanks

[0mega]

Thanks for all the responses, but ds100a supplied the useful information I was after. Pendragon IS have been blaming our end client for all late payments, making it seem as though it was JUST the internal billing system that was the issue; but if they are paying late on other sites too then their argument is nonsense.

ds100a we've also had issues with getting hold anyone from Pendragon that can explain the continued late payments. One guy today phoned constantly to inform them that his contract was effectively void and he is now only onsite as a gesture of goodwill to the client, but they refused to return his calls.

Thank God I have Agency Default insurance!

0mega

PS: Interestingly I heard recently that Pendragon are extremely reluctant to come onsite and explain why their financial incompetence is threatening several major projects due to potential loss of key personnel. Funny that.

[Janner]

Other sites

Which site are you on?

Pendragon had a similar issue with late payments to about 20 contractors at the Met Office. Silly thing is that the Met Office are good payers. Search in the Accounting/Legal forum for 'Agencies and Late Payment Penalties'. In the end the contractors got together and complained en bloc to the Client. Everything now seems to be sorted and we are getting paid in 30 days ish.

There were rumours that there was another site with similar problems and that Pendragon were using Met Office payments to keep the contractors on the other site sweet, but paying every one late. Pendragon made various excuses but none of them held water.

If you do get a chance to talk to Pendragon they will try and deal with each contractor separately -divide and conquer. They will point you at clauses in your T&Cs about payments. 11.4 - Payment in terms of schedule by later of: 11.4.1 - 30 days after receipt of invoice and signed work log, 11.4.2 - pendragon being paid by client.

Why have a pimp if they won't take the risk and pay regularly.

Try hitting them for late payments and they hit you with clause 11.6 - 2% interest above LLoyds TSB rate and starting 30 days the payment was late. i.e. no penalty interest until after 60 days. Although there is no mention of it they will also deny any liability for penalty compensation payments because it is not in T&C.

They will claim that there payments compensation meets the legislation because if is substantial. If you want to push it the only alternative is courts.

By the way PCG were less than helpful and only point you to the Pay on Time website. Pendragon have a PCG approved contract but it is approved for IR35 not late or fair payments.

[Not So Wise]

11.4.2 - pendragon being paid by client.

Trying not to be mean but....More fool anyone who signed a contract with such a clause in it

[malvolio]

By the way PCG were less than helpful and only point you to the Pay on Time website. Pendragon have a PCG approved contract but it is approved for IR35 not late or fair payments.

That's not being unhelpful. The late payments legislation they are referring too is your proper and only recourse. If you've contractually agreed that a payment is late only after various other things outside your control have happened, then more fool you. Doing the due dilligence thing is your problem, nobody else's.

Of course, if you're opted in, 11.4.2 is certainly illegal and the others are marginal, so you could challenge the whole contract...

[Barvek]

Pendragon - later and later

Pendragon had a similar issue with late payments to about 20 contractors at the Met Office. Silly thing is that the Met Office are good payers. Search in the Accounting/Legal forum for 'Agencies and Late Payment Penalties'. In the end the contractors got together and complained en bloc to the Client. Everything now seems to be sorted and we are getting paid in 30 days ish.

Sadly, Pendragon are back to their old tricks. I am disappointed to read that so many other contractors have had difficulties with them. I have now had a spell of late payments and a contractor has recently walked and taken them to court. What is most disturbing, this current batch of lateness (7 contractors at the MET office effected in November) came after a personal appearance from the finance director, assuring those who would meet with him that this was all a thing of the past. What’s worse, they blatantly flaunt the law with respect to late payment penalty and simply refuse to pay it, offer no explanation or warning of late payment and have to date never apologised or acknowledged there is a problem.

My advice would be to carefully consider if your business can manage this level of financial exposure, they have gained reputation. Perhaps consider a different agency?

Buyer beware!

[crabapple]

Pendragon payment fiascos. Worst UK Agency?

Hi

I am one of the unfortunate suckers!

I have been with Pendragon for a year on an IT contract and have had to chase or fight for all but one invoice. The payment delays and lack of response from their accounts dept (apparently outsourced) are nothing short of ridiculous.

The resulting personal stress, financial insecurity and wasted time have made this the worst contracting experience in 12 years, and I have considered walking away from the contract just to be rid of them.

The experiences of those in this thread are VERY familiar! I have had several personal reassurances that things would improve - and they haven't. Escalating payment issues within my organisation has not helped.

Its unlikely my employer would use Pendragon again after my experiences (also shared by the only other Pendragon contractor in the organisation). Pendragon probably know this and know they don't need to maintain their reputation there - which doesn't really help my cause...

I would be interested to hear of any more Pendragon experiences - in particular other attempts to take legal action against them which is something I am ready to consider.

Also, anyone got any thoughts on
- is it worth me joining PCG to help my case?
- suggestions on effective means of publicly shaming Pendragon...
- other places to inform (potential) contractors that they should avoid Pendragon at all costs?

Thanks C

[Turion]

This sort of sh!t is usually a prelude to agency insolvency. Anyone done a credit check on them? Do they have large debts or other financial issues. Certainly a good bet for next agency failure. If it happens, you guys can't say that you we're not warned.

[cojak]

keep an eye on them posting their accounts with Companies House...

Name & Registered Office:
PENDRAGON INFORMATION SYSTEMS LIMITED
PENTRE HOUSE
BRILLEY WHITNEY ON WYE
HEREFORD
HEREFORDSHIRE
HR3 6JF
Company No. 03581053

Accounting Reference Date: 30/06
Last Accounts Made Up To: 30/06/2007 (FULL)
Next Accounts Due: 30/04/2009
Last Return Made Up To: 15/06/2008
Next Return Due: 13/07/2009

[SuperZ]

Why don`t you push your client harder. IMO, the client is the key to dealing with the agency that the company themselves selected to use. Pendragon are in breach ofyour contract and should really also be in breach of the contract held with the client also. Clients should care about the contractors being paid because while pendragon are in breach of contract you are free to walk off site leaving the client possibly in the sh**.

I`ve had a bad experience with Pendragon before. I doubt I would use them again or if I did, I`d get something written in the contract regarding payments and I wouldn`t give them any chance either - one late payment and I`d be off.

Last year Pendragon lost out on doing business with me.Another agency advertised the same contract I wanted to apply for so I chose the other agency and got the contract. Pendragon called me about the position just after I landed the contract and I said "the job is already gone, I got it through another agency" - they didn`t have much to say after that. If they had kept me sweet I would of wanted to work through them. The bad reputation they have these days could even be the downfall....

I know for a fact that Pendragon has had cashflow issues even during the good times so I`d be very careful dealing with them right now. Anyone having issues should contact 'Robert Holden [email protected]' who I believe is one of the directors and might be able to help you if you mention damaging the reputation between them and your client.
Good luck