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Jenny
Jenny, Solicitor
Category: Law
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I am a contractor that signed up to complete an 18

Resolved Question:

Hello,
I am a contractor that signed up to complete an 18 month contract to deliver a Oracle implementation. Commenced in July 14 for a scheduled completion Dec 15. The contract specifies 30% delivery bonus on achievement of 3 key milestones, go-live Mar 15, hypercare exit June 15 and project wrap up Dec 15. This project is now likely to be cancelled and my employer has promised to honor the contractual commitment. I am awaiting this update from them.
From a contractual perspective if the project is cancelled and the 3 milestones now wont be reached am I still entitled to the contractual bonus amount or am I dependent on the employers goodwill? The contract does not have an provisions for a cancelled project.
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Hello my name is ***** ***** I will help you with this.
What does the cancellation clause say? Or are you saying there is no clause at all for cancellation?
Customer: replied 2 years ago.

Correct the contract does not cover what happens in the event of cancellation.

Attached is the wording.

Attachment: 2015-06-23_103543_bonus_criteria.docx

Customer: replied 2 years ago.
Relist: Answer came too late.
Expert:  Jenny replied 2 years ago.
Hello my name is ***** ***** you still like help with this?
Customer: replied 2 years ago.

Yes please

Attached are the bonus criteria. The contract does not include any provision for project not proceeding.

Attachment: 2015-06-23_124220_bonus_criteria.docx

Expert:  Jenny replied 2 years ago.
Hi the bonus document makes provisions for milestones that should have been reached in March this year and in June this year, are you saying that these milestones will not be reached in the event that the project is cancelled?
Customer: replied 2 years ago.

Yes - the milestones have currently been deferred to Sept 15 and Mar 16 and are now likely to be cancelled and project not proceed.

Expert:  Jenny replied 2 years ago.
Contractually as none of the criteria have been met your employer has an argument that this is not payable as the amounts are clearly linked to the measurable targets as opposed to the dates.
I realise that this is not what you want to hear, in the event that the failure to meet the target have been down to other issues with the project and have not been your fault then you can clearly call on their goodwill to ask them to pay you a bonus.
Sadly you would not be able to use this clause on its own to bring a claim in breach of contract against them.
If you have any further questions please do ask.
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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