payment of weekly invoice stops

[northernladuk]

Assuming of course the company is solvent, a binding contract wont help if they haven't got any money

You did get a credit report on the client didn't you?

Indeed but that has never been mentioned or hinted in the OP's post so we can only assume this isn't the case here but always worthwhile to bear this in mind when starting with any client, whatever size.

[Safe Collections]

The OP needs to understand his situation better before he takes any of the advice given. If it is pure internal politics then keep an eye on it and don't worry, his contract is still binding and must be honoured. He should know from the conversations if this is final or not. Understand the situation then make a decision. Don't go in with a knee jerk reaction until the situation is fully understood.

Best advice on the thread, keep your cool and try and find out exactly what is going on. Our only caveat would be:

his contract is still binding and must be honoured

Assuming of course the company is solvent, a binding contract wont help if they haven't got any money

You did get a credit report on the client didn't you?

[northernladuk]

The first action should be to look for another contract, since at the moment there is a realistic chance you will be paid, but not certainty.

A lot depends upon how much they need your work.

If they will suffer serious and immediate impact, then saying "I'm going home now, let me know when it is sorted" will get it sorted.

Notice I say "immediate impact", like the servers just stopping.

It is not enough that your departure will cost them money, because that will just arm one side in the squabble with "an now it is costing us £X and you may end up reinforcing the idiot who is stopping you being paid."

I do think as has already been mentioned the OP needs to understand his situation better and which budget is being argued over. I came to find this thread again as exactly the same has just happened to me this morning. I have just had a chat with two client budget holders and my contact at the consultancy I am actually billing as neither of the two managers can agree which budget I should sit under due to a restructure. My situation is pure politics. Someone will have to pay, that isn't a problem, it is just who. No indication whatsoever that this affects the contract or their ability to pay so am quite comfortable with the situation. It may result in a slight delay in payment which I (depending on timescales of course) would be willing to swallow for the client so we can all get it sorted. Simples, just a political hiccup, nothing more.

The OP needs to understand his situation better before he takes any of the advice given. If it is pure internal politics then keep an eye on it and don't worry, his contract is still binding and must be honoured. He should know from the conversations if this is final or not. Understand the situation then make a decision. Don't go in with a knee jerk reaction until the situation is fully understood.

[Dominic Connor]

If you don't work you don't earn

The first action should be to look for another contract, since at the moment there is a realistic chance you will be paid, but not certainty.

A lot depends upon how much they need your work.

If they will suffer serious and immediate impact, then saying "I'm going home now, let me know when it is sorted" will get it sorted.

Notice I say "immediate impact", like the servers just stopping.

It is not enough that your departure will cost them money, because that will just arm one side in the squabble with "an now it is costing us £X and you may end up reinforcing the idiot who is stopping you being paid."

[LisaContractorUmbrella]

I get paid weekly and the weekly- invoice clear off on a friday. So, I would not know till Friday of a week if I have got paid for the week before.
If they would then decide to let go of me then I would have already worked without pay for 2 weeks.

Though I have a got relation regards to work with the client, its always been a pain during contract extensions.

But surely you would get your timesheet signed off on a Friday and would then know that you are entitled to receive payment for the work that you have done. Are you working through a recruitment agency or direct with the client?

[Sid]

I get paid weekly and the weekly- invoice clear off on a friday. So, I would not know till Friday of a week if I have got paid for the week before.
If they would then decide to let go of me then I would have already worked without pay for 2 weeks.

Though I have a got relation regards to work with the client, its always been a pain during contract extensions.

[kevpuk]

+1 to comments above - fair enough to be aware of a potential scenario that may impact payment, but - at this stage, at least - there is not currently an issue to my mind.

[TheFaQQer]

Surely the OP is correct to be worried?

If neither department has budget then I'd rather know now, rather than wait til they breach payment terms.

This might also focus the issue in the minds of the client as opposed to letting it drag on - either letting you go, or sorting out who pays.

The contract is with the company, though - I don't care who pays for my services within the company, that's for them to fight over. As long as I have a valid contract, and there is work to do, then I do the work, I bill the company.

If the client hasn't breached the contract, then there isn't much you can do - you either walk (and then you are possibly in breach of contract) or you wait until they do and then argue it.

[LisaContractorUmbrella]

Surely the OP is correct to be worried?

If neither department has budget then I'd rather know now, rather than wait til they breach payment terms.

This might also focus the issue in the minds of the client as opposed to letting it drag on - either letting you go, or sorting out who pays.

We'd need more info really but I read it as an internal squabble between bean counters rather than the company not having the cash to pay the OP but even so I can't really see how you can complain if they are within their agreed contract terms - if payment terms are 30 days and they are arguing over which cost centre should take the hit on day 7 I'm not really sure you necessarily have much legitimate cause for complaint. If, on the other hand, you have reason to suspect that the company doesn't actually have the money to pay you that's a different scenario.

[northernladuk]

Only you can make that decision but have a think about a couple of factors...

How much risk are you willing to take? If you stop work you will definitely not be paid, at least if you go in you have a chance of getting paid. If it all goes wrong and they don't pay you all you will have lost is a week sitting at home (or however long).

What is the situation with your contract? If you are contracted they are legally obliged to pay you, regardless of budget so I don't think stopping work will really achieve anything but give you a week off.

I don't think some internal wrangling will mean that you will not get your money eventually. It is not like they have no budget or are refusing to pay you. You have a legal binding contract, the must pay you if you work. You don't care who's budget it is and they will sort it at some point. Internal wrangling is not reason enough for you not to be paid and I am sure their legal and financial depts will also realise this.

I think some fairly strongly worded mails wouldn't go a miss though, but for a week or two I wouldn't jeopardise my relationship with my client over this. Budget arguments are hardly new and definitely not the end of the world. Maybe try and get something from their finance dept to confirm you will be paid one way or another and give them a deadline before you start adding interest.

That is MHO anyway. Am sure someone will come along and tell you to play hardball.

What is your relationship like with your client like this issue aside? Always been tense or is this just a blip in a good working relationship?

[jmo21]

What are the payment terms within the contract and have these been breached?

Surely the OP is correct to be worried?

If neither department has budget then I'd rather know now, rather than wait til they breach payment terms.

This might also focus the issue in the minds of the client as opposed to letting it drag on - either letting you go, or sorting out who pays.

[LisaContractorUmbrella]

What are the payment terms within the contract and have these been breached?

[Sid]

Hi,
If my client stops paying me(because of internal disagreement which manager's budget pays for my extension), what are my legal options? Should I stop work immediately, or gently remind my reporting manager but continue work till the budget issue is resolved?