I am a start up I hired company X to do marketing for me this included branding, brochures, photoshoot, banners, leaflets etc.
They quoted me 10 days work to deliver scope of work the of delivering work includes modifications of drafts once the client (me) provides feedback after review. The work was invoices at GBP 500 a day + VAT Total Invoice = GBP 6000 based on the scope and requirements I gave them. I paid this to them upfront before any work had started.
After payment and still before the work started I de-scoped 3 days of work in order to save money as these items were nice to have, but not essential and a good practical use of funds,
They said rather than refund me they would use these 3 days as contingency if need be. I agreed.
They then delivered the first draft of a brochure that was way off brief. So there would be more time spent on modification then they had originally anticipated. As I mentioned previously I had asked them to share progress and draft with me to ensure we did not have to deal with the type of situation which they failed to do.
In the end when all the work was done I have come back some time later chasing up the contingency money that I believe was due. There had been some verbal discussion that we might use this for some later work as it materialised i decided not to use there services again.
They are now claiming I am not due any of the contingency money back this equal to GBP 1500 as they have used it to delivery the work (i.e it took more time than they anticipated however they never communicated this to me or seeked my permission.
Does this make sense?