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Started By
Message
Freelance work issue
Posted on 6/7/16 at 11:00 am
Posted on 6/7/16 at 11:00 am
I teach at a university, and do some consulting work on the side. During the summers, I have an opportunity to take on more consulting work.
There is a company that I do a lot for that has been very good to me as far as pushing business my way. They called me in April with a project, we settled on terms 120-day contract that ends mid-August, $X amount of money, paid monthly. I never received payment mid-May and was expecting double payment mid-June.
Got an e-mail last night that said suspend all work. shite has hit the fan. Called this morning and the company that hired me has been fired by the company I was doing work for. Wasn't specific to my side of things, it just wasn't working out with an account manager and such.
So I'm nearly half way through a $12,000 contract, and it looks like I'm going to have to eat the work. I turned down other work to do this. I was told to submit an invoice for the work that I did and they will try to get it paid but it didn't look good. Bridges were apparently burned.
The way I see it, I have the following choices:
1. Request payment directly from the end client.
2. Request payment directly from the company I was technically contracted with.
3. Eat it.
There is a company that I do a lot for that has been very good to me as far as pushing business my way. They called me in April with a project, we settled on terms 120-day contract that ends mid-August, $X amount of money, paid monthly. I never received payment mid-May and was expecting double payment mid-June.
Got an e-mail last night that said suspend all work. shite has hit the fan. Called this morning and the company that hired me has been fired by the company I was doing work for. Wasn't specific to my side of things, it just wasn't working out with an account manager and such.
So I'm nearly half way through a $12,000 contract, and it looks like I'm going to have to eat the work. I turned down other work to do this. I was told to submit an invoice for the work that I did and they will try to get it paid but it didn't look good. Bridges were apparently burned.
The way I see it, I have the following choices:
1. Request payment directly from the end client.
2. Request payment directly from the company I was technically contracted with.
3. Eat it.
5
Posted on 6/7/16 at 11:27 am to anc
quote:
2. Request payment directly from the company I was technically contracted with.
Posted on 6/7/16 at 11:31 am to anc
3 sucks and 1 is worth a shot but I would be stunned if they pay it, especially if they have already paid the company you contracted with (which is something I would ask).
2 is your only option, really. You had a contract with them and as long as you held up your end of the contract, you are entitled to get paid for the work you did pursuant to the contract.
2 is your only option, really. You had a contract with them and as long as you held up your end of the contract, you are entitled to get paid for the work you did pursuant to the contract.
Posted on 6/7/16 at 11:47 am to anc
quote:
1. Request payment directly from the end client.
2. Request payment directly from the company I was technically contracted with.
3. Eat it.
A few quick thoughts:
What kind of work? Might be worth looking into whether there are any applicable statutory liens (even if there isn't anything on point, if you can mention something that is even close it will make them more likely to pay).
Did the Client know that you were a subcontractor or did they think they were just paying the Company?
Has the Client paid the contractor for the work you performed?
Has the Client received/utilized your work product?
Does the Client have any specific complaints about your work?
Posted on 6/7/16 at 12:05 pm to anc
quote:
Called this morning and the company that hired me has been fired by the company I was doing work for.
I'm a little confused by this. Who was the contract with?
For sake of clarity, let's call "company that hired me" company A, and "company I was doing work for" company B.
If you had a contact as a subcontractor for company A, which was a subcontractor themselves for company B, then company A owes you the money. Company A is free to go after company B for their fees, but you being paid should not be dependent on that. If you ask company B for money they will probably tell you to frick off.
ETA: see below
quote:
That is assuming Company B either paid Company A for his work or never received his work.
I was assuming the company A never recieved anything since the other company B was fired mid-stream.
Probably a dumb assumption, but OP should find this out to know options.
This post was edited on 6/7/16 at 1:06 pm
Posted on 6/7/16 at 12:21 pm to TigerDeBaiter
quote:
If you had a contact as a subcontractor for company A, which was a subcontractor themselves for company B, then company A owes you the money. Company A is free to go after company B for their fees, but you being paid should not be dependent on that. If you ask company B for money they will probably tell you to frick off.
That is assuming Company B either paid Company A for his work or never received his work.
Subcontractors sue Owners all the time when the sub hasn't been paid and the Owner has gotten the benefit of the sub's work. There are various contractual and statutory issues, but generally an Owner can't just say, "I don't have a contract with you so your work product is mine for free and you can't do anything about it."
Posted on 6/7/16 at 12:32 pm to anc
Is there a payment bond for subcontractors you could tap into?
Posted on 6/7/16 at 1:01 pm to Porker Face
quote:
Is there a payment bond for subcontractors you could tap into?
No. It sounds like there may be a Chapter 7 looming for the end client. I'm going to have to just move on. I can't really demand payment with the organization that subcontracted me without creating some issues and possibly affecting future business.
At the end of the day, people just suck and will use you for anything they can get out of you, then move on.
Posted on 6/7/16 at 1:05 pm to studentsect
What kind of work? Might be worth looking into whether there are any applicable statutory liens (even if there isn't anything on point, if you can mention something that is even close it will make them more likely to pay).
IT/Communications. There aren't any applicable statutory liens.
Did the Client know that you were a subcontractor or did they think they were just paying the Company?
I am fairly confident that they do, but not 100%.
Has the Client paid the contractor for the work you performed?
Not to my knowledge. I have a fairly long history with the organization and have never had a problem being paid timely before now.
Has the Client received/utilized your work product?
60% done with the project. I received an order to stop all work. There is one major component (e-commerce site) that is ready to use and they have in hand.
Does the Client have any specific complaints about your work?
I have not heard any feedback whatsoever.
IT/Communications. There aren't any applicable statutory liens.
Did the Client know that you were a subcontractor or did they think they were just paying the Company?
I am fairly confident that they do, but not 100%.
Has the Client paid the contractor for the work you performed?
Not to my knowledge. I have a fairly long history with the organization and have never had a problem being paid timely before now.
Has the Client received/utilized your work product?
60% done with the project. I received an order to stop all work. There is one major component (e-commerce site) that is ready to use and they have in hand.
Does the Client have any specific complaints about your work?
I have not heard any feedback whatsoever.
Posted on 6/7/16 at 1:11 pm to anc
quote:
No. It sounds like there may be a Chapter 7 looming for the end client. I'm going to have to just move on. I can't really demand payment with the organization that subcontracted me without creating some issues and possibly affecting future business.
At the end of the day, people just suck and will use you for anything they can get out of you, then move on.
If you have a lot of history with the company you subcontract with, they ought to pay you for the work you did. But I would make sure to get paid for the next job up front.
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