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Cancellation Charges and Admin Fees - Freelance consulting.

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    Cancellation Charges and Admin Fees - Freelance consulting.

    Folks,

    I would like to get your valued opinions on the following;

    I am a freelance consultant that when I am not in a fixed term contract use a consultancy company to get additional work.

    Recently I took time out of my fixed term to do a 5 day gig with a company I have not worked with before - a kind of taster if you like.....

    Anyway after phone calls were made; flights booked, hotel booked, car hire booked, and basic admin - and all paid for out of my pocket, I received news that the gig had been pulled at the 11th hour by the Client.

    Because I am not working with the client direct, I am going through this consultancy group, in your opinion should I be charging a small cancellation fee - IE the time I spent getting everything ready.........

    I did not have a contract in place for this gig as it was a small taster but I have been left with somewhat of a bad feeling in my mouth.

    When I last spoke with the consultancy company they advised they did not have a cancellation clause with the client and would not be able to recoup anything other than my expenses.

    I am cool with this if I have to put it down to a lesson learnt - and in future before I agree to anything I will ensure I have something signed which includes cancellation/admin costs.

    For the type of work I do on the consultancy as a matter of course the client does not pay for the work until the end of the project and when the timesheet and Statement of Work has been agreed and signed off.

    Have any of you experienced this sort of thing before and what did you do.

    The problem I have is if I were to do anything like book a flight/hotel/holiday etc and I cancelled it within 48 hours of the time I would be subject to a cancellation fee so surely it makes sense for me to do similar.

    The problem I have is I do not want to set standards so high and costly that people will not bring business my way and on the flip side of this I would not want to be taken as a push over and just be passed risky business that maybe cancelled at the last minute........

    Anyway any feedback would be awesome.

    Thanks

    #2
    Just be glad you're getting your expenses paid.
    Down with racism. Long live miscegenation!

    Comment


      #3
      Originally posted by NotAllThere View Post
      Just be glad you're getting your expenses paid.
      I would tend to agree with this statement. Being in business on your own involves risks and uncertainties like this. The time you spent preparing for the job is an investment your company made in order to gain a new client / new work. I know this sounds harsh but it's realistic.

      Comment


        #4
        So IYHO what you're both saying is that business is tough get used to it; especially in a Service related industry that requires contractors/consultants to incorporate costs in order to just win the business.

        And if I were to put in place some sort of cancellation cost (for example cancelled gig within 24 hours) would make the client liable for 25% of the overall cost - then I am likely to lose any kind of business in the pipeline.

        Sorry if this all seems simple to you guys but I am new to this and just see the likes of other companies charging cancellation costs and am trying to understand in the IT contracting world why we are not subject to the same kind of processes??

        Maybe I should just be damn thankful that I had the prospect of a 5 day engagement in this market?!?!?!?!? And I am honestly I am!!!

        Thanks again for you opinions.

        Comment


          #5
          What does your contract with said consultancy say??

          I guess that it boils down to what is in writing between you and whoever is paying you. If there is no cancellation clause, then the best you can do is use the bookings etc you have made and cant back out of for the best and enjoy a mini holiday while also using the spare time to re-word your contract in light of experience.

          If I had a pound for every time my wife picked up a pair of shoes, queued up to pay and changed here mind at the last minute, well, I wouldnt be posting on here thats for sure.

          Every assignment has risks and (hopefully) rewards even if the reward in some cases is a lesson learned....

          PZZ

          Comment


            #6
            Originally posted by NotAllThere View Post
            Just be glad you're getting your expenses paid.
            Fair comment, lots of clients wouldn't stump up for expenses even though it was their cockup.

            I'd use the tickets anyway and tour the local sights.

            Comment

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