Need Legal Advise - client refuse to pay

[Sunfire]

Hi bros, I need some legal advise.

The story goes like this;

Me and another guy was hired to do a project for my former employer. The price agreed on in the contract was 2k upfront, another 2k when the project is completed, and reimbursement of claims to us.

After the project is over, we got our 4k each, but when it comes to claims (which is our personal expenses on the job), the client said - 'you spent money and you didn't tell us, how can we claim for you?'.

Beforehand, we had submitted an expected expenses sheet to them - but our problem was, it was through email.

Now they are withholding our claims because 'we spent money that they didn't approve of', or rather, they are playing the 'waiting game', as in they refuse to reply our smses or emails untill we give up.

Is there any legal action we can take against them? I mean, I'm owed 500 dollars, but it's a relatively small amount, compared to the amounts of money I go through each year, the things that is 'questionable' is just a piece of computer hardware of 150 dollars. The thing that irritates me is that it's the principle of the matter, damn it. And to piss me off for 500 dollars....they would have been better off giving me the money, it's cheaper in the long run.

Any advise?

[wks]

Hi Sunfire, I have to make it clear that I'm not a lawyer before I can comment on your thread. Based on my previous experience working as a project manager in the construction industry, I assume this a lump sum contract which you entered with your client. If this is so, the client will only pay the money according to whatever sum that is agreed in the contract. Any other costs incurred that are related to the project will be known as variation order which need be approved by client first before you can proceed. So your client maybe right to say that they have not approved of the extra $500 which you put forward as claims.
The best thing you can do now is to ask a lawyer friend to go through that contract document with you to ascertain the nature of contract. Then you have to conduct a face to face discussion with your client to settle this dispute amicably.
Failing that, you can turn to the authorities for help like the small claim tribunal.

[Sunfire]

Ok thanks. Anyway the claims thing was a verbal agreement, not in contract. Actually we were stupid also, based on goodwill of leaving former employer, we didn't word out the contract properly.

Anyway it's ok, I'll most likely go small claims tribunal, it's another 20 dollars, but I'll probably scare them into getting some money back. The most important thing is that I don't lose sleep over this lost money.

I'm lucky, another friend of mine had to wrap his multimedia company because client didn't pay. This is the cutthroat world of being self employed.

[Justikanz]

A verbal agreement is a contract. Legally lah... Only thing is it is damn difficult to prove this type of contract.

Anyway, try to remove the part of the claim the company don't want to approve and claim the remaining. It is not worth the time and money to get a lawyer...

[cwtan12]

Your contract with your client is little similar to ours at the moment. I am working as Contracts Manager for a MNC handling all these things. My current project is a Reinbursement or commonly called Cost Plus in the industry. In fact you did a mistake by not having approval records (black and white in this case) before you spent. Next time, you can just create a simple form for all those claimable expenses and send them for your client's approval before you proceed with anything. This shall be attached with the receipt when you claim and don'tforget tomake a duplicate copy for yourself.

the client said - 'you spent money and you didn't tell us, how can we claim for you?'

It shows that your client still need to claim from their client. Without approval, records and proper documentation, they are not able to claim as well. If you want them just to pay you without being able to claim from their client, I don't think they will pay.

Your ground is very weak to go for legal actions. However it depends on the contents of your contract with them. Please check the clause on the reimbursement part for what kind of approval is needed. If those stipulated in your contract isn't clear, then treat the lost as a lesson learnt. Otherwise the only way is to talk to the person who has the authority to decide whether they can pay you and camourfludge that particular payment in the account. Yours is only a verbal. That's even harder.

[Goondoo]

I agree with Justikanz,
I feel that you should set up an official meeting with the person charge of the project. You should then take the opportunity to break up the extra cost spent into categories and move into details why each penny was spent without their knowledge. If they are agreeable to some of the parts, bill them those parts first. If they are not, try to explain or prove to them why the payment was necessary (documents, quotation from other companies etc).

Business world is relatively small in Singapore. Another friend/ally is always better than another foe.

Cheers,
Billy Cheong

[Sunfire]

Thanks for all the advise. I guess this is part and parcel of working life. Anyway it'll be good if they are picking up and responding to my calls or smses, if this is not deliberate ignoring, then I also don't know what to say...

Business world is relatively small in Singapore. Another friend/ally is always better than another foe.

Anyway another friend to have in business is good, but realistically, it takes two to clap, and do note that these practices are rude at best, inethical at worst.

Anyway its ok, I somehow suspect the situation is going to work out for me, because I'm going to be motivated to develop better products and sell them to their rivals..... with this good experience added I'll only be wiser. I'll be smiling as they get really squeezed, there are not that many product developers in the market yet.

In the end, I'll still win.

Thanks again!

[Jungle-mania]

That is the right attitude, I concur with goondoo about having allies over friends and the business world in any industry in Singapore is small, people know each other very well. You try to be a squeezer, you naturally create your own slow progressive death for your business.

It is really heartening to see so many businessmen here, I always viewed businessmen in Singapore who can stay in their trade as fighters.