To find out how to navigate a tricky client who doesn’t want to pay, or tries to take back work that was contractually agreed upon, check out this quick video or give this a quick read.
Here’s a story about a directional drilling company.
They were engaged by a client to do drilling on a project
They agreed on rates,
And how many kilometers they would drill
They also agreed on a contract and they began work.
When the project started there were a few issues between the client and the drilling company, but nothing that isn’t standard in construction.
The client never expressed that they were unhappy with the work.
The next thing, a new directional drilling company arrived on site.
The original drilling company saw the new drilling company starting on site but assumed they had been hired for a different aspect of the project.
What happened next was the client told the original drilling company that they didn’t actually need them to do 100% of the work anymore.
They were told to just do 50%
Nothing was said about transferring it to the other company, and at no point was the original company told they were doing a bad job. Nothing had been communicated.
Turns out the client found a cheaper drilling company to come in.
Later when the original drilling company submitted their two invoices for payment the payments were rejected for being too high.
If we look at this from the client’s side they entered into the contract agreeing on the work and rate but then found someone cheaper and this upset them. Hence they didn’t want to pay.
Being upset or angry is not a reason to withhold payment.
Not only is withholding payment a problem
BUT
The client also withheld a portion of the work that was agreed upon.
Remember you’re entitled to get paid according to the contract
Check termination clauses
Check variation clauses
And if you don’t know where to start, luckily we’re here to help.
For more contractual advice, Quantum Contract Solutions is here to guide and assist you through everything contract related. Let’s reduce risk in your contracts and save time and money, just click this link to get our FREE case study to show you how clients just like you are doing i
