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Alex J.
Alex J., Solicitor
Category: Law
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Experience:  Solicitors 2 years plus PQE
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I am a self employed contractor who undertook some work for

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I am a self employed contractor who undertook some work for a company for a lump sum - the work actually dragged on longer than the agreed time because the client did not provide the required information accurately or in a timely manner. The company I undertook the work for are trying to pay me a reduced amount because I did not complete the work in the agreed Statement of Work, however this is because I was excluded from the required information and the draft report I was to prepare was done by their internal staff using specialised software. What are my rights?
Submitted: 3 years ago.
Category: Law
Expert:  Alex J. replied 3 years ago.
Hi,

Thank you for your question and welcome.

My name is XXXXX XXXXX I will assist you.

Can you send me the details of your payment terms under the statement of work?

Does the agreement contain any termination rights?

Kind regards

AJ
Customer: replied 3 years ago.

Payments terms only state what is to be paid and a project end date - however I can prove that we were still waiting information from the client well after the end date. They also claim they will pau me less because the client changed their requirements. The clause on payments states -


Acceptance Criteria and Processes:
i. All of the deliverables submitted as part of this project will be reviewed by First Group and will be approved by the First Group Project Sponsor as per the SoW between Concorde and First Group dated December 2013
e. Fees: Fixed price project at £10,000
f. Expenses: Included in e. above
g. Start Date: On or after 6th January 2014
h. End Date: On or before 31st March 2014
i. Number of Days: n/a
j. Work Location: Work will be carried out at either Concorde’s office or the Consultant’s own office


The clause on termination states -


6. Exceptional Conditions
a. Termination Conditions: 5 days written notice by either party
b. Indemnity: Company must ensure adequate indemnity insurance in place
c. Liability: Company must ensure adequate liability insurance in place
d. Intellectual Property Rights: As dictated by Subcontractor Agreement


 

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

How much do they actually want to reduce the fees by and have you actually done less work?

I would say you have grounds to sue for it, because it says it is a "Fixed Price Project". In the same way that you cannot charge extra if you end up having to do more work, it would suggest they cannot under pay just because they have failed to provide you with everything as required under the Statement of Work.

Does the document contain any "Change Control" provisions?

Kind regards

AJ
Customer: replied 3 years ago.

They have offered me £6000 a reduction of £4000 but as I have worked for them since January I may have to accept that figure as I am running out of funds. If I accept £6000 will this affect my rights to claim the remaining amount?


 


I have done less than was listed in the SOW but actually more because of the change in requirements. I did not produce draft reports as I was told they would be done online, I have not been given the option to complete the recommendations as I don't have sight of the reports.



There are no change control provisions in the SOW



Many thanks



Sandra

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

You accept payment of the £6,000 as long as it is not accepted as "full and final settlement". You must accept it without prejudice to your rights to claim the remaining £4k.

I would be of the opinion that once you entered into the contract and started doing the work you were entitled to the whole sum. You have met all your obligations as far as is possible and have only been prevented from completing your obligations by their actions.

Court action is fairly stressful and likely to cause a delay to payment. Also as it would be a matter for the small claims court you would be unlikely to get all your costs back. Have you considered trying to negotiate.

Try saying to them that they cannot rely on their failure to provide you with information as a grounds for non payment. Why dont you go back and say in the interests of getting it settled and without prejudice to any of your rights, you will accept £9k. Then maybe you can settle on £8k?

The alternative is you have to sue them which will doubtless distract from you actually running your business.

Kind regards

AJ
Customer: replied 3 years ago.

Not sure if you received my response as the site crashed and I couldn't access you reply. This is excellent - many thanks. I will see what happens


 


Thank you again


 


Sandra

Expert:  Alex J. replied 3 years ago.
Hi,

I wish you the best of luck.

Please do not hesitate to contact me if I can assist further.

Kind regards

AJ
Alex J. and other Law Specialists are ready to help you
Customer: replied 3 years ago.

Will do Alex - many thanks


 


Sandra

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