Agency Payment Issues

[0mega]

Sadly our client seems to give Pendragon unlimited chances to stay on their preferred suppliers list, despite the most senior procurement bod calling them ethically questionable (during a telephone conversation, he wouldn't write that down!).

I'm caught by their handcuff clause, so due to the interesting nature of technical contracts, quality business relationships and daily rates I've maintained on my current site I am obliged to continue using them... but I've now had to engage a debt collection agency to recover an outstanding invoice from them.

Pendragon are utterly toxic.

Avoid at all costs, or if you're caught make sure you have pretty good agency default protection and someone very big to physically restrain you from visiting their office.

[Ardesco]

Sadly our client seems to give Pendragon unlimited chances to stay on their preferred suppliers list, despite the most senior procurement bod calling them ethically questionable (during a telephone conversation, he wouldn't write that down!).

I'm caught by their handcuff clause, so due to the interesting nature of technical contracts, quality business relationships and daily rates I've maintained on my current site I am obliged to continue using them... but I've now had to engage a debt collection agency to recover an outstanding invoice from them.

Pendragon are utterly toxic.

Avoid at all costs, or if you're caught make sure you have pretty good agency default protection and someone very big to physically restrain you from visiting their office.

If they havn't paid you in the time specified in your contract they are in breach of contract and no handcuff clauses apply. You can bin the agency and move across to somebody else and there is not a thing they can do about it.

[ASB]

If they havn't paid you in the time specified in your contract they are in breach of contract and no handcuff clauses apply. You can bin the agency and move across to somebody else and there is not a thing they can do about it.

I think you'd struggle to be honest - though if you have been through all the appropriate steps and taken the appropriate recovery action you'd have a much better chance.

The other side of the coin though is your fiduciary duty as a director. Continuing to work whukst there is an apparent serious risk of non payment could be construed as a breach of this duty.

Difficult either way

[SuperZ]

Sadly our client seems to give Pendragon unlimited chances to stay on their preferred suppliers list, despite the most senior procurement bod calling them ethically questionable (during a telephone conversation, he wouldn't write that down!).

I'm caught by their handcuff clause, so due to the interesting nature of technical contracts, quality business relationships and daily rates I've maintained on my current site I am obliged to continue using them... but I've now had to engage a debt collection agency to recover an outstanding invoice from them.

Pendragon are utterly toxic.

Avoid at all costs, or if you're caught make sure you have pretty good agency default protection and someone very big to physically restrain you from visiting their office.

Looking at your first post Omega, you seem to work with the Met Office. It doesn`t surprise me the Met Office hasn`t delt with Pendragon appropriately - there is nearly as much incompetence there as in Pendragon. Interesting place to work, but sometimes laughable (I worked there some time ago). I know someone from the history of Pendragon, I`ve even heard a few things mentioned about the relationship between the Met Office and Pendragon but can`t go into more detail and I can`t confirm it 100% so wouldn`t want to start a rumour.

You should of all grouped together and forced the Met Office to deal with another agency which might of worked. Of course, everyone is afraid they`ll end up just walking though, hence why you`re over a barrow.

SuperZ

[SuperZ]

If they havn't paid you in the time specified in your contract they are in breach of contract and no handcuff clauses apply. You can bin the agency and move across to somebody else and there is not a thing they can do about it.

Thing is though, I believe the Met Office themselves would have to pay off Pendragon if any contractors were employed through another agency and that would be very costly. Obviously the contract between Pendragon and the Met Office is dufff, no allowance for the Met Office to escape Pendragon should they prove crap........

[expat]

If they havn't paid you in the time specified in your contract they are in breach of contract and no handcuff clauses apply. You can bin the agency and move across to somebody else and there is not a thing they can do about it.

With respect, that is an assertion of fact, and from what I have been told before, it is not true (though IMHO it ought to be).

Not paying you on time is perhaps a breach of contract, but (to everyone's surprise when they first hear it) paying late is not a material breach of contract. It justifies you withholding your services until the outstanding amount is paid, but then you have to provide them again: the contract is not void, handcuff clauses still apply, and you may not bin the agency. Only a material breach voids the contract.

[SuperZ]

With respect, that is an assertion of fact, and from what I have been told before, it is not true (though IMHO it ought to be).

Not paying you on time is perhaps a breach of contract, but (to everyone's surprise when they first hear it) paying late is not a material breach of contract. It justifies you withholding your services until the outstanding amount is paid, but then you have to provide them again: the contract is not void, handcuff clauses still apply, and you may not bin the agency. Only a material breach voids the contract.

But probably different if it happens on a consistent basis, that has to be material breach of contract as is the case here I beleive - you can`t consistently withhold services from the client each week while awaiting yet another late payment to arrive(assuming weekly submitted invoices)

[Smurficus]

Seems that regular late payment can be a material breach:

In assessing the claim, the High Court considered that the following were of significance in deciding if a breach of contract was material:

• the impact of the breach on the innocent party compared with the position it would be in had the contract been fully performed;
• whether the breach was intentional and not due to a misunderstanding or administrative error;
• whether the amount involved was neither minimal nor trivial; and
• the circumstances in which the breach occurred.

link

[Off To Work]

Non Payment

I'm in the same boat - have been waiting a long time for payment

Anyone having any luck getting funds from Pendragon? who is the best person to talk to?

Help??

[PinkPoshRat]

Is this the end for Pendragon's Met Office Contract?

I had an interview at the MO 4 weeks' ago. I was told, in the interview, that I would hear back regarding whether I was successful by the end of that week. I was told that they wanted me, but there was 'an issue' regarding my daily rate (they wanted to pay me £65 less per day than they did when I was there before on a contract in the same role...) I am still chasing Pendragon for news after 4 weeks - - - - HERE'S THE INTERESTING BIT - - - - The contract between the Met Office and Pendragon expires this month. I have heard from some inside sources, that they are not having the contract renewed. This would quite possibly explain why I have not heard back regarding the role I went for 4 weeks' ago.