Maintenance Contractor breaking the law?

TINKERBELL · 9 March 2018 at 7:45PM

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 · 10 March 2018 at 10:22PM

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 · 12 March 2018 at 6:15PM

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 · 14 March 2018 at 7:36PM

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.

Maintenance Contractor breaking the law?

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