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Payment major issue with client

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Cerebus:

--- Quote from: DigitalDesigner on January 11, 2022, 03:16:19 pm ---Thank you,
I don't know because the client is based in Reading (near London) so UK rules would apply.

Anybody know about UK rules?

Thank you very much!!

--- End quote ---

No, this is now a cross-border issue and there is no guarantee that "UK rules apply". In fact it just got more complex. Did you have an initial written contract? Did it contain a "choice of law" clause? If it did, which jurisdiction did it pick, UK or Eire? Where were the contract documents signed, the UK, Eire, or "I don't really know, it was all done remotely"?

See how sticky it already gets?

rsjsouza:
I am also not a lawyer, but with that last piece of information (i.e., cross borders), if you did not designate a jurisdiction near your house to settle any disputes, IME the 18k will quickly be dwarfed by the total bill with airplane/ferry tickets, hotels, lawyer time, etc.

nctnico:
Tough spot... Probably the simplest way out is to send everything that has been developed so far (files, papers, prototypes) and tell them you halt any development work until the open invoice has been paid in full. This likely forces them to look for someone else to finish the project. This looks like the kind of client you don't want to work for anyway so good riddance. I wouldn't worry about claims so much; you have a clear paper trail on what has been requested from you and you delivered what they paid for (and more). If push comes to shove you can always use your unpaid bill as a counter claim.

In the future make sure that you always quote hours for additional work and have a client agree with it. Developing with a blank cheque doesn't work out very well in most cases. I have become extremely hesitant to take on projects without a clearly defined scope.

Towger:

--- Quote from: rsjsouza on January 11, 2022, 05:06:56 pm ---IME the 18k will quickly be dwarfed by the total bill with airplane/ferry tickets, hotels, lawyer time, etc.

--- End quote ---

This is where it lies, legal costs are very high in Ireland, the costs will be even higher as across border.
 
Customer wants Extra Work, Specify Requirements and Quote for work, Receive PO from Customer (or written acceptance if small company dealing with boss), Begin Work.
 
I am in the same country as the OP, a former boss was not shy on taking court cases.  :palm:  Our standard contract was written by the person who wrote the main text book book on writing technical contracts!  Most clients who did not look at it in detail, but the odd big one with in house legal team did, and had a fit  :-DD  They were told to take it or leave it.   For 18K the OP would need to forget about the courts.


--- Quote ---The main question is, legally, does he have any ground to stand on about breach of contract?
--- End quote ---

The PO is not on strong ground as he never fulfilled the original contract.  It will cost a multiple of 18K to bring to court, take years and cause more stress than writing off the money.  If you lose a court case you could be out of pocket by +100k.
 

--- Quote ---And do I have any obligation to do any more work to deliver the original specs too?
--- End quote ---

You signed a contract.  But the reality is there is not much the client can do, unless he has deep pockets.

floobydust:
Is it strictly a lump sum contract? Adding Ethernet for free basically???
I generally avoid these for engineering consulting because clients can be poorly oprganized and the requirements never nailed down. Or there is scope creep and other circumstances that cause cost overruns.

OP your client appears crafty and likely knew how to get more for nothing, and even this dispute he'll have experience dragging things out and knows legal fees, his threats etc. will drag you down, unless you sue including costs.

On the other side, most consultants I have dealt with will not provide any deliverables until fully paid.
Releasing any source documents is a bad idea until you're paid up. Otherwise any other firm can take over your work, while you remain unpaid.

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