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Jenny
Jenny, Solicitor
Category: Law
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Experience:  Qualified Solicitor specialising in Employment Law and general legal matters. Please start your question For Jenny Only
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We run a landscaping company and sub contract to another contractor.

Resolved Question:

We run a landscaping company and sub contract to another contractor. We receive a contract from them yearly (renewable) and this states the T& C etc. We do ad hoc work outside of the normal contracted scheduled work. This work is priced (normally) by Contracts managers and then distrubted accordingly to the field teams (ie sub contractors). We receive an e-mail with the scope of work to be done and a price. We have done said works and submitted an invoice and have now been refused to be paid until we lower the invoice as the work is outside there allowed hourly rate. There is no mention within the contract of hourly rate only that all extra works (ad - hoc) must be agreed in writing with the Contracts manager this must include the scope of work, price and a WIP number ( Works in Progress) and that we must supply before and after photos.All of which we have been complaint with. Can they therefore now refuse to pay the invoice and place our account on hold. Some of this work is dating back over 6 mths and has placed a huge financial strain on the company forcing us to release all our staff from contract as we are no longer in a position to trade financially.
Submitted: 2 years ago.
Category: Law
Expert:  Jenny replied 2 years ago.
taratill :

Hello my name is ***** ***** I am happy to help you today. Did you receive an email in the normal way in respect of the work that you carried out?

Customer:

Hi Jenny, All ad hoc (extra works) was received via e-mail yes

taratill :

Ok so has the ad hoc work been paid for, and it is payment for the work under the main contract that is under dispute? I just want to check I correctly understand the position here?

Customer:

No it is the ad hoc work that they are refusing to pay. they are stating it is outside there hourly rate allowable

taratill :

Ok understood, have you been paid for ad hoc work in the past at the normal rate?

Customer:

All previous ad hoc work has been paid for and we have never had mention of an hourly rate prior. Some of current historical invoices that we have been chasing date back to July 2014 and they are refusing to pay as they want us to re- issue new invoices for there stated amounts

Customer:

Previous ad hoc work was for substantial monies and done quickly and no customer complaints received and payment to us was done after the 30 days period.

taratill :

Is there anything in your 'main' agreement with them which sets out that ad hoc additional work will be charged for separately?

Customer:

It states within our contract from them " All extra works jobs you undertake in addition to client - specific permits to work where required. These sheets must be signed by the client. Your confirmation sheets must be fully completed and submitted with a covering invoice. Your invoice must be on headed paper, quotin ghe WIP numerb a unique invoice number and your VAT number if applicable. Invoices should be broken down to itemised all non labour costs such as skips, plant hire, waste disposal costs etc.You must agree the scope of works and price for any extra works with your contracts manager prior to commencing of works. Failure to do so may result in delay of payment"

taratill :

well your agreement supports your position that payment should be made and they are in breach of contract for failing to pay the invoices. It is a slightly difficult situation in that you still have ongoing work with them and need to try to retain a relationship. Notwithstanding that you need to put to them that they in the breach of contract and are liable to pay your invoices. It may be that you will need a letter before action in order to demonstrate to them that you mean business.

Customer:

So they cannot withhold any of our monies as there is no stating of an hourly rate within there contract?

taratill :

No they cannot they are in breach of contract.

Customer:

Many thanks. So i just need to write to them advising that they are in breach of contract & wish for payment to be made forthwith

taratill :

exactly. If you can avoid it you don't want to take legal action, for obvious reasons, but that will be an option for you in the future if they do not pay.

Customer:

OK many thanks for your assistance was greatly appreciated

taratill :

No problem, I would be grateful if you would take the time to rate my answer. Do come back to me in the future if you need to.

Customer:

OK thank you and i will do.

Jenny, Solicitor
Category: Law
Satisfied Customers: 6307
Experience: Qualified Solicitor specialising in Employment Law and general legal matters. Please start your question For Jenny Only
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