Client cancels job 1/2 way through - Invoicing

[andye30m3]

Quite annoyingly I've just had a client cancel a job I'm 1/2 way though. I agreed to design an extension for him and deal with the planning and building regs side of things.

Measured the existing house a couple of weeks ago and was due to have everything together for the planning application a couple of days ago when he announces that he's had an estate agent and it looks like he'll be better off just moving.

Fair enough but I was slightly concerned with his e-mail sign off ' sorry for any inconvenience' which to me didn't sound like the words of someone who was intending to discuss the financial side of things.

I responded suggesting that we settle on a fee of 1/3 of the original agreement which I feel is reasonable on my part however as yet I've had no response, he is normally good at responding to e-mails.

Just after a bit of advise as to the correct way to deal with this as I've not had any issues with non paying clients before, is it acceptable to estimate the % of work completed and just send an invoice?

Presumably if he still doesn't want to pay it's small claims court which isn't really worth it for the figures involved but I don't really think thats a fair way to deal with people.

[The Mad Monk]

andye30m3 said:

Quite annoyingly I've just had a client cancel a job I'm 1/2 way though. I agreed to design an extension for him and deal with the planning and building regs side of things.

Measured the existing house a couple of weeks ago and was due to have everything together for the planning application a couple of days ago when he announces that he's had an estate agent and it looks like he'll be better off just moving.

Fair enough but I was slightly concerned with his e-mail sign off ' sorry for any inconvenience' which to me didn't sound like the words of someone who was intending to discuss the financial side of things.

I responded suggesting that we settle on a fee of 1/3 of the original agreement which I feel is reasonable on my part however as yet I've had no response, he is normally good at responding to e-mails.

Just after a bit of advise as to the correct way to deal with this as I've not had any issues with non paying clients before, is it acceptable to estimate the % of work completed and just send an invoice?

Presumably if he still doesn't want to pay it's small claims court which isn't really worth it for the figures involved but I don't really think thats a fair way to deal with people.

Well,

you have either got to

ask him nicely for the money, or

ask him forcefully for the money, or

take him to court, or

shrug your shoulders and forget it.

I don't really think there are many other options. frozen sausages, or parking in front of his house don't really work, in my experience.

[jammy-git]

What was your original agreement with him? Any contract?

Usually for services like this I'd expect for you to take 1/3 or a 1/2 as a deposit?

[oxford drinker]

Send him an invoice for a proportion of the fee based on the time you've spent and how much of the work you've done. Or for how many hours you've spent x an hourly rate that gets you to a figure you're happy with.

It's amazing how many people who think that by cancelling a job they will not get a fee invoice.

[andye30m3]

Thanks for the replies. I think I'll just send him an invoice and see how he deals with it.

I have an agreed fee for the work which is payable upon submission of the application, I should really ask for a deposit in advance but always feels a bit wrong asking for money up front.

[Rude-boy]

andye30m3 said:

Thanks for the replies. I think I'll just send him an invoice and see how he deals with it.

I have an agreed fee for the work which is payable upon submission of the application, I should really ask for a deposit in advance but always feels a bit wrong asking for money up front.

I, once upon a time, was bothered about asking for money up front. To be honest i only ever tend to do it for the disbursements i have to make, rather than my fees except for a few known difficult payers.

I still don't like doing it much, but i hate writing time, and more so money, off even more than i dislike the slightly thorny at times conversation about funds on account..

[KevinCamaroSS]

andye30m3 said:

Thanks for the replies. I think I'll just send him an invoice and see how he deals with it.

I have an agreed fee for the work which is payable upon submission of the application, I should really ask for a deposit in advance but always feels a bit wrong asking for money up front.

You are in business, you need to work as a business, so, 1/3rd up front plus any disbursements you will need to make. Avoids this kind of issue.

[TooMany2cvs]

andye30m3 said:

I have an agreed fee for the work which is payable upon submission of the application

So, since you've not reached that point, there's nothing owed, right...?

If your Ts & Cs don't state there's anything due for work cancelled before that point, then you are not going to get very far if he doesn't pay that invoice...

[fridaypassion]

Yeah dont be shy about having a deposit as an engagement fee. Anyone thats remotely serious wont bat an eyelid. If its cares some fools away then it will be better for you in the long run.

[Sparkyhd]

KevinCamaroSS said:

You are in business, you need to work as a business, so, 1/3rd up front plus any disbursements you will need to make. Avoids this kind of issue.

Agreed. Why are people so embarrassed to talk money. McDonald's ​won't hand over a 99p cheeseburger unless you pay upfront so why commit to providing a professional service without agreeing clear terms?

[Robertj21a]

I would invoice him, as you suggest, but recognise that you may never receive any payment. Probably a good time to review your future arrangements a bit.

[russy01]

TooMany2cvs said:

So, since you've not reached that point, there's nothing owed, right...?

If your Ts & Cs don't state there's anything due for work cancelled before that point, then you are not going to get very far if he doesn't pay that invoice...

Whether it's morally right or wrong ultimately I agree with this and this would be my argument to you. I'd take it as a lesson, try your luck with him but don't fart about with court.

Change your terms and make them commit. If he had to commit to you weeks ago he might have thought harder about the whole thing back then, but he had nothing to lose so let you get on with it...

Good luck.

[Cyberprog]

I'd bill him myself! Sounds like he's taking the piss a bit to be honest.

My current architect was up front and told me how much everything would be at each stage, with the survey being stage 1, drawings & planning app being stage 2. He sent me a fee agreement to sign before he did any of this, though his initial consultation with us was free (as you might imagine, to win the business!)

[andye30m3]

He's replied saying he's happy for me to invoice him.

Sounds like it could have been a lucky escape and need to at the least look at wording of quotes going forward

[red_slr]

andye30m3 said:

Thanks for the replies. I think I'll just send him an invoice and see how he deals with it.

I have an agreed fee for the work which is payable upon submission of the application, I should really ask for a deposit in advance but always feels a bit wrong asking for money up front.

FWIW we ask for 20% on jobs <£10k and 50% on jobs >£10k. Must be paid 7 days before any work starts.
Not same industry but it sorts the messers out straight away.

[48k]

andye30m3 said:

Sounds like it could have been a lucky escape

Don't say that until the money is in the bank.

[joshcowin]

Interesting a lot of talk of asking for money up front, however on these forums many consumers would not deal with companies that do this!

[jammy-git]

As a web developer I've never had a client query my payment terms of XX% up front.

[TooMany2cvs]

joshcowin said:

Interesting a lot of talk of asking for money up front, however on these forums many consumers would not deal with companies that do this!

There's a difference between "money up front" and Ts & Cs saying "If you cancel before we reach the conclusion, we'll invoice you for the work done up until then".

[Johnniem]

Next time you do a fee proposal add words to confirm that if the job is cancelled before being completed then the client will be charged on a time spent basis at a rate of £x per hour. As long as it is in your fee proposal and so long as you are acting on the basis agreed in your fee proposal then he has no leg to stand on. Fees will always apply in accordance with your fee proposal. Hence why the RICS require Chartered surveyors not only to provide a fee proposal but to confirm it once the job has been instructed.

Easy.