RE: Engineers As Consultants Pt. 11: When A Client Turns Into A Deadbeat

gadget.iom — Thu, 11 Dec 2014 11:45:21 GMT

Good article. Looking forward to reading the entire series.

RE: Engineers As Consultants Pt. 11: When A Client Turns Into A Deadbeat

adbokat — Fri, 28 Nov 2014 17:56:08 GMT

I agree: good post. Having to rely on a contract and legal action is a painful "last resort" (if cost-effective). Going to court can be expensive. Then, even if you get a judgment, you have to enforce it (more expense) to get your money. If they have nothing, you get nothing. Still, a "best practice" you can do is make sure that the contract both puts you in good legal shape and accurately (and clearly) lays out obligations.

To be sure, sometimes people are just out to take advantage of the good nature and professionalism of others. Some calculate your costs of perusing them in court and know how far to push before you'd take court action.

If possible, have the contract specify that you get some money up front and progress payments. It is not exactly a retainer, at least as it applies to contracts between lawyer and client. A retainer for a lawyers means that the lawyer holds the clients money in a trust account. It remains client money (in a trust account) until it is earned. Only then can the lawyer take the money form the trust account. Money up front and progress payments, though, should be yours to cover star-up expenses, materials, and to reserve your time.

Plus, to me, it is also a test of seriousness, trustworthiness, and ability to pay. It also reduces the risk of loss. Often people have the best intentions and expect to be able to pay, but never really had the present ability. They may inadvertently, unconsciously, or deliberately expect you to be an investor (your time, knowledge, material, etc.) in their project or dream. If they then can't pay, then they and the contractor are stuck. Then sometimes a "pretext" arises as to why pay is not forthcoming: late delivery, not what I asked for, etc. If you sue, and if they even bother to answer, you are likely to get counter claims against you. A court system that maybe does not understand any of this then has to decide whom they believe.

If you can resolve ability to pay and trustworthiness in advance of engaging, that would be great. You might still get burned, but the idea is to reduce risk as much as is reasonable.

--Steven Hill

RE: Engineers As Consultants Pt. 11: When A Client Turns Into A Deadbeat

kas.lewis — Tue, 16 Sep 2014 18:40:00 GMT

I'm really enjoying your series, as someone who would love to branch out and mork less in a formal company setting your posts offer a lot of great pointers.

Thanks

Kas

RE: Engineers As Consultants Pt. 11: When A Client Turns Into A Deadbeat

DAB — Tue, 26 Aug 2014 18:07:20 GMT

Good post.

I remember my first consulting work writing software for a start up.

Unfortunately they left we with an unpaid 1000 USD bill that they could not pay. They later filed bankruptcy, which left me without recourse.

It was a painful lesson, but one I learned from, so I am glad that you pointed out such details for the contract.

It never hurts to remind the customer that they need to pay up or risk contract violation.

DAB