Although much of what we are saying below will apply to all types of contracts, in this blawg we will examine the above question specifically in the context of an IT contract between two businesses.
In IT contracts, in particular, this is a common problem for suppliers – the work has been done, you’ve submitted the final invoice, and then… silence. In lots of instances, it’s even harder to stomach, because the client might actually be using the website or the app you’ve designed for them over the last 6 months!
So what can you do about this?
For most suppliers, preserving the commercial relationship is usually the priority and this is usually balanced against the “how” and “when” you chase payment.
The options available to you will likely depend on a number of factors and they are interlinked. The main factors will be:
• Why the client is not paying: i.e. is it a case of late payment or non-payment?
• How strongly the “contractual” cards are stacked in your favour to give you the confidence (or the client the message that your contract is strong enough to make it easy for you) to pursue legal avenues?
• The state of the commercial relationship and how keen you are to preserve it.
As there is quite a lot to say on this matter we will be exploring the options in detail in a further blawg next week, so keep your eyes peeled for that.
Also, keep a lookout for an announcement for our next Digital Law Scrum and… Bacon which will touch on this issue.