When a customer burns you.

[Strata R Chalup]

Michael,

It's a bit late now that you've quit, but my advice in this
situation is never to quit unless the client is visibly broke.
As long as you are still onsite and helping, they have an
incentive to pay you something, even if it's installments and
overdue.  Once you walk away, they have ZERO incentive to
pay you, figuring that it will take more money in legal fees
and lost wages on your part to collect than they owe.  :-/

If you don't feel the bridge is fully burned, I'd recommend trying
to reopen it on a personal level, ie apologizing for quitting and
offering them a discount of 5 - 10% or so on the bill.  Set new
expectations about invoicing, and generate a monthly invoice.  Try
to talk to Accounts Payable directly, and ask them what, in their
opinion, would be the best way to go about getting this resolved--
but don't bluster or threaten the nice folks at A.P., they've heard
it *all* before and won't be impressed or cowed.  Times are getting
better, but I'd be surprised if any of us would like to walk away
from a $15K invoice if there were a better way.  Despite your very
real grievance, the fact that they're calling folks to "finish the
job" shows they're thinking of you in a bad light (a quitter) and
may be tarnishing your rep with other folks.  They're not going to
say "well, we didn't pay somebody so they left", they're going to say,
"somebody left" and then you look bad.  :-(

What one generally does in these circumstances is makes friends
with the Accts Payable folks during one's introductory phase with
the company, meeting them in person while dropping off tax
forms and the like.  Then when you put in your invoices, you
find out who can sign off on them (or, sometimes, who HAS to
sign off on them) in addition to your manager in order for you
to be paid.

It's much better to invoice by the milestone rather than by the
job, so that the client never gets a chance to have sticker shock
or say, "gee, now that email is working again, was it really worth
that much?"  or similar.   When working a longterm onsite contract
as corp to corp, I generally invoice monthly and list specific
accomplishments on the invoice if there aren't formal milestones.
I also list pending items still to accomplish, so that it's clear
that there are still things to be done and that they need to keep
me happy as I keep them happy.  :-)

I also very explicitly state in my contract and on my invoice that
the terms are net 15 (and let them assume net 30, which they all do),
and set a penalty for late payment of 5 - 10%.   If I am paid late and
the job is a continuing one, I specifically list the late payment
charge for previous invoice on my next invoice.  I also make a point
of waiving it in writing on that invoice, to establish that I'm
being nice about it.  Another thing I have tried successfully is
to establish an "early discount" or "preferred customer" rate,
billing at the standard rate and making a note on the invoice that
payment postmarked on or before net 30 is eligible for a 5% discount.
I let them do the math, though I do check it when I receive payment.  :-)
Some institutions have specific policies that mandate early/on-time
payment when a discount can be obtained, so then you have the Accts
Payable folks batting for you instead of being dispassionate observers.

Good luck on this one!

_Strata

Michael T. Halligan wrote:

> I've recently quit a project due to a customer's inability
> to pay me on time.  They still have a $15k outstanding debt
> to me (billable hours to me, and billable hours of subcontractors
> whom I've already paid).  They have money, that's no doubt, so
> I'll probably have a good leg to stand on in court.  it's sad
> I have to do that.      
> 
> They informed me they were looking for a new contractor to
> "finish the job", and have already called up one of my subcontractors
> trying to get them to go in and do the work.  My guys aren't
> that stupid, but how can I inform other contractors about the risks
> of working with this company? What channels are available?
> 
> -------------------
> Michael T. Halligan
> Chief Geek
> Halligan Infrastructure Designs.
> http://www.halligan.org/
> 2250 Jerrold Ave #11
> San Francisco, CA 94124-1012
> (415) 724.7998 - Mobile
> 
> 

-- 
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Strata Rose Chalup [KF6NBZ]                      strata "@" virtual.net
VirtualNet Consulting                            http://www.virtual.net/
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