Customer invoiced me for poor work !!

DKLS

smallzoo wrote: »

Thanks for all the great replies.. I'll try to answer them all

Whose fault is it that the website launch was delayed?

....Both of us for not understanding what was wanted as it changed..

Does the website do what it says it should do in the spec?

...The original spec was a very simple two page representation which is a lot simpler than was produced

Did you manage the expectations of the client due to his scope creep?

..I guess not !


Is there a written contract between you for this work?

...No written contract

1. Were there any penalty clauses or liquidated damages clauses in your contract ?

..No


2. Do you not have professional indemnity insurance ?

..No



Thanks

Have to love working for yanks they are a litiginous bunch and this does have a whiff of he doesn't want to pay up about it.

Based on what you have said his case seems pretty spurious. Is the site live and working? if so could you take it down if needed? I would initially suggest talking to him and trying to resolve amicably.

But as soon as please get some pli, mine covers me for 10 million and costs £300 a year
And set up clear contracts, with agreed deliverables and payment schedules, and manage the project, if the scope creeps so does the deadline and budget and most importantly manage your customers expectations at all times.

PS who owns the IP? or wasn't that agreed?

smallzoo

Thanks for that

It all started on the 18th September. His last email said we would go live that weekend but just to wait as he was flying back to LA and also they were quite busy at the lodge park.... then nothing.. I have not been able to talk or email anyone since then

Good idea from everyone about PII. I did ring them but because I already had an invoice from these guys they wouldnt insure me..

interestingly the invoice did not have a vat number, company number or proper invoice number..it also had my name on the invoice not my limited company

InsideInsurance

DKLS wrote: »

But as soon as please get some pli, mine covers me for 10 million and costs £300 a year
And set up clear contracts, with agreed deliverables and payment schedules, and manage the project, if the scope creeps so does the deadline and budget and most importantly manage your customers expectations at all times.

PS who owns the IP? or wasn't that agreed?

If there is no contract then the question of IP is difficult as there is going to be doubt over which jurisdiction governs the unwritten contract. Under USA law it would be the client that owns the IP in the absence of a contract as it was produced by commission. Under English law on the other hand the OP would retain the IP but an unlimited/ unrestricted license would almost certainly be assumed to have been given to the client for its use.

In the first instance I would look at how the OP and client came together as if its via a freelancing site like Guru.com its terms may define jurisdiction.

As to insurance Professional Indemnity, Product Liability or Public Liability with embedded product may all have a part to play depending on exactly what has gone wrong. Sounds like the OP doesnt have any of these so its a bit of a mute point.


How the OP should react will depend on how serious they think the client is. Most who send an "invoice" and other such bluster never go anywhere and can be safely ignored. Obviously some are more litigious and ignoring these certainly arent good.

What exactly is the £4,000 invoice state it is for? Is it rectification work thats been done by someone else? What was the total value of the contract? How much have you been paid already?

Buzby

There is no automatic right of set off between what he owes you, and what he feels he should pay. Issuing an invoice to you is laughable - it has no worth or merit whatsoever, but he may be a problematic payer of your final bill, so it may be easier to be pragmatic and get him to realise his shortcoming too.

pmduk

I suspect this how your customer became a millionaire in the first lace.

smifffy1989

smallzoo wrote: »

Good idea from everyone about PII. I did ring them but because I already had an invoice from these guys they wouldn't insure me..

They wouldn't want to insure work you have completed in the past, IE past exposure.

I would speak to an Insurance Broker and ask for a Technology Professional Indemnity policy. I believe Allainz, QBE, Zurich & Barbican all offer one.

They will want to put a retroactive date on the policy which is essentially excluding claims arising from work done prior to the retroactive date.

I would also start using a standard contract that stipulates extent of work and payment schedule. Any changes need to be agreed in writing.

InsideInsurance

It sounds like the issue is with a product they have sold, ie the website, and not advice that they have given in which case Professional Indemnity may not cover the issues anyway

rs65

smifffy1989 wrote: »

They wouldn't want to insure work you have completed in the past, IE past exposure.

They could get cover for past work but not when a potential claim circumstance is known.

rs65

InsideInsurance wrote: »

It sounds like the issue is with a product they have sold, ie the website, and not advice that they have given in which case Professional Indemnity may not cover the issues anyway

It probably would.


OP, you need legal advice. A counter claim is a common tactic to avoid payment. He may drop the claim when he finds out you are uninsured and your business has no significant assets, but he may not. Get proper legal advice.

keyser666

Cannot remember seeing it but how much does he owe you?