Contract but no Purchase Order yet

[paul11]

I am working on a contract where my Ltd Company has been contracted direct by the client, no agent is involved.

The contract and working conditions have been assessed and I am not captured by IR35.

Contract clearly states rate, notice period etc.; Client has many contractors working under same circumstances.

My question is: a purchase order has never been issued by the client to my company, what risk am I exposing myself to without PO cover?

[Have been contracting man years but always through an agent - this is is first time direct to client]

[SueEllen]

None if you have a contract which the client has indicated quite clearly that they agree with.

In IT contracting such a contract is normally a typed document which is signed by authorised people of both companies.

I've never had a purchase order with direct clients only a written contract.

The only thing I would stress with a direct client is that you should stop payment tricks in their tracks by asking about a week before you raise your first invoice in writing what information they require on your invoice to pay your company. You can do it in email but make sure the reply has the person who answers name on it.

Also have a look at the site The Late Payment of Commercial debts (Interest) Act - Pay on Time. Hopefully you won't need it but it's better to be prepared as some direct clients who manage invoices themselves, or accounts departments in larger clients think it's a good idea to delaying paying smaller companies.

[PSK]

If the contract is clearly signed by the client (not always legally required but it stops many arguments) and if it includes payment terms then one 'minor' risk is if it's an organisation with 'no PO, no pay' policies and/or it needs a PO number to drive the payments process. I've seen a few times where 'procurement' think they have control and 'IT' issue contracts to keep autonomy and this crystallises when payments don't get processed. If the client has many contractors working under the same conditions and if they've not had payment problems then not having a PO (which is usually just a short contract itself with terms and conditions in the back that often clash with the overarching contract) probably won't be an issue.