Unpaid Invoice Advice

[MirrorsEdge]

Hi there, i've been lurking for a while and hoping some of you fine folk can give me some advice/confirm I'm proceeding properly.

From around 2010 until summer of this year I've done some on-and-off contract work for a consultancy. They'd take me on for around 3 months sometimes longer, here and there to do various things - mainly BA work, some technical documentation creation and so on. Basically whenever their order book grow too quickly for permanent staff to deal with.

Previously they always paid on time -i.e. within the 30 days agreed in contract.

Before the summer they decided to get rid of most contract staff and move to a permie only model. Fine, I thought, I'll go elsewhere, and I lined up an interesting contract that due to the nature of the project had a date it _had_ to start by. One of those 'clean room' projects where you can't talk too much about things due to a merger taking place, limited internet access and so on. I let the consultancy know I was only available up to a certain date and they were ok.

In the end, in this final contract I only managed to complete something like 128 of the 130 deliverables. This was complicated with the consultancies having technical problems with the platform they were using, as well as there being a complication in that any work I was doing was having an impact on another project and vice versa. Regardless of this, throughout my time on the project it was well known and accepted that it was a difficult situation. Because the endless technical issues were delaying my own work, the CEO of the consultancy called me and asked me, basically begged if I could do 3 days more. Due to the positive history I'd had, I agreed and called my new contract and made the appropriate excuses. Luckily they were ok with me starting on a later date.

I finished upand let the end client know I'd send out the last 2 bits after the weekend. There were only ever 2 days allocated for this work. Due to the pressure to finish things up in time before my contract expired, I had left these two, fairly discrete pieces of work until the end since they were isolated items. I got to these last two bits and realised that there was actually more than 2 days work needed. On the Sunday I had to fly to the city my new contract was based; and then on the monday myself and my new team were told no personal mobiles on site and all the usual things that come out of doing work that involves some kind of security clearance. Fair enough.

I finished up some of the work and sent what I could over to the Consultancy with my apologies. Explained that the work was taking more time then planned, and told them I'd deduct the 2 days from the time billed.

I expected that they would probably wanted to deduct more than 2 days, as the inconvenience is around more than just the deliverable, there's also the fact the client needed the work done on time and so on.

I sent across an invoice and apologised by phone for the situation but explained how unfortunately we had not factored in contingency time in what was a difficult project where the client asks for changes regularly and needs to be managed carefully on these. Whilst working on my new contract it was pretty hard to contact me due to the constraints of the project and my location etc.

I heard nothing at all re: the invoice.

Waited 30 days, still nothing.

Waited 20 days more and then started emailing reminders. eventually I got an acknowledgement that they were waiting for 'final approvals'. After more calls and pressure I get a phone call saying I will be called today (this was friday) but that there were issues around some 'remedial work' - the first time any query about the work was raised. I didn't get a call, and I've given them monday as a deadline when I will start applying interest to the quite overdue invoice (something like 70 days since I submitted it).

So, the 'too long don't read is'. Had a bit of a 'rough' end to a contract due to time pressures and small chaos toward end, it having a hard stop, and new contract having a hard start. Regardless, completed something like 98% of all the work. First time this has happened and have learned lesson not to be in this situation again. Client seems to be ignoring/playing hard ball with money.

Does anyone have any experiences in this situation? My view is I have to start charging interest as the payment is very late; and they've yet to even discuss any kind of payment. It's a sizeable amount of money.

[northernladuk]

Look up 'Dunning' and start doing that

Look at payontime.co.uk

Use search to find a number of other threads about unpaid invoices and see how they got on. Advice on how to search can be found here http://forums.contractoruk.com/welco...uk-forums.html . It is asked fairly regularly with varying degrees of success at outcome.

PM Safe Collections that post regularly on here and either ask their advice or get them to come post a response on here.

MODS : Can he have his PM unlocked please?

[Kanye]

What were you contracted for?

Per day, on a day rate?

Or for specific deliverables?

If the former it is pretty cut and dried and they should pay up regardless.

If the latter it is a lot more open to debate.

[MirrorsEdge]

I was contracted per day, on a daily rate.

The contract itself included a list of requirements to progress through, they were all completed apart from 1, possibly 2. The client was notorious for 'asking for more' and changing their mind, which was fine when I was managing them, but my concern is since my departure they would have raised issues and taken advantage of my absence.

I see your point though - regardless of the work I was working on, I was contracted to do a set number of days, so it's harder for them to dispute this. They certainly have sent me nothing in detail to dispute this.

[Safe Collections]

I was contracted per day, on a daily rate.

The contract itself included a list of requirements to progress through, they were all completed apart from 1, possibly 2. The client was notorious for 'asking for more' and changing their mind, which was fine when I was managing them, but my concern is since my departure they would have raised issues and taken advantage of my absence.

I see your point though - regardless of the work I was working on, I was contracted to do a set number of days, so it's harder for them to dispute this. They certainly have sent me nothing in detail to dispute this.

Hello

So the contract was for a set number of days and not in any way tied to the deliverables? If that is the case legally you should be paid for the time worked.

However if you had agreed you would be able to complete 100% of the deliverables and failed to do so the client may have an argument.

You should definitely start chasing the invoice in a more concerted fashion given how long the client has had to make payment. You can get some template collection letters here given how overdue it is you may want to go straight for the final demand.

That usually gets a reaction

[MirrorsEdge]

Thanks for the tips - I went straight to the final letters due to the time that has passed.

In the meantime I saw this:

https://www.gov.uk/statutory-demands/overview

The Statutory demand looks like the most effective method of forcing them to respond - since if they 'ignore' me they face being wound up / bankruptcy.


I'm seeing a number of different options I could pursue:

1) money claim online
2) solicitor that deals with debt recovery
3) debt recovery agency
4) statutory demand

It's difficult to know which method I should choose.

[Safe Collections]

Thanks for the tips - I went straight to the final letters due to the time that has passed.

In the meantime I saw this:

https://www.gov.uk/statutory-demands/overview

The Statutory demand looks like the most effective method of forcing them to respond - since if they 'ignore' me they face being wound up / bankruptcy.


I'm seeing a number of different options I could pursue:

1) money claim online
2) solicitor that deals with debt recovery
3) debt recovery agency
4) statutory demand

It's difficult to know which method I should choose.

You have summed up the situation pretty well, however we would not recommend issuing a Statutory Demand in this case.

The gov link provided is extremely simplistic in its language and content, but it completely glosses over the fact that issuing a Statutory Demand prior to obtaining judgment can be extremely risky and potentially very costly for the creditor.

If a debtor has a dispute then it is quite possible for a creditor to find the court considers the issue of the demand to be abuse of process. In these cases creditors run the very real risk of being held liable for the debtors costs in opposing the action.

Given that you have previously stated:

In the end, in this final contract I only managed to complete something like 128 of the 130 deliverables.

In our view you would need to get a judgment before issuing a demand to avoid the pitfalls outlined above.

Regarding the best option for recovery, we provided a quick guide on the various options here.

Hope that helps

[rootsnall]

You have summed up the situation pretty well, however we would not recommend issuing a Statutory Demand in this case.

The gov link provided is extremely simplistic in its language and content, but it completely glosses over the fact that issuing a Statutory Demand prior to obtaining judgment can be extremely risky and potentially very costly for the creditor.

If a debtor has a dispute then it is quite possible for a creditor to find the court considers the issue of the demand to be abuse of process. In these cases creditors run the very real risk of being held liable for the debtors costs in opposing the action.

Given that you have previously stated:

In our view you would need to get a judgment before issuing a demand to avoid the pitfalls outlined above.

Regarding the best option for recovery, we provided a quick guide on the various options here.

Hope that helps

How much are you actually owed ?

Have you got a named contact at the consultancy who is senior enough to get you paid. I would start ringing them on a daily basis and sending them emails with veiled threats of going legal and quoting the right legislation etc etc Basically get them to decide it is easier to pay you than handle the aggro coming their way. It worked for me with 2 months of money outstanding, my phone calls and emails were getting ignored after a week or so but the money eventually arrived in my account. They may still play hardball but it worked for me.