Maintenance Contractor breaking the law?

TINKERBELL

We run a small business. One of our customers, a very large maintenance company, has emailed all their suppliers telling them that they will deduct 2.5% from every Invoice submitted to them. This is despite their suppliers holding Purchase Orders from the aforementioned company valid for a year, confirming a set price. I realise this is against the law but do not know how to handle it? Has anyone else experienced this?

Percy1983

In simple terms they are not paying for services products received at the agreed price (Purchase orders should form a contract) then chase them for the outstanding balance on each short payment, if they refuse stop supplying products/services as they are in breach of the agreement which then means you don't have to complete your side of the bargain.

From there you can negotiate a lower price for cut down services/products or walk away.

phill99

Simple: start a claim in the Small Claims Court for the 2.5%. See where it gets them.


TBH I think you are best off without these kind of customers.

paddyrg

Yep, it's filthy practice when a big company says "oh yeah, we know we got you to agree to 90-day terms instead of 30, but now we are going to discount everything by 3% across the board - fight us".

A large high street shop does this routinely.