I’ve typical entered into contracts with clear statements of work (SOW),
explicitly stated deliverables on a checkpoint/milestone basis, with
progress payments due for each deliverable/milestone. My contracts state
that if each progress payment is not paid timely, i.e., due on receipt, that
work stops until payment is received. If you’re on a hourly contract, then
you should still have clear deliverables, and timely payment. Would any
employee continue working if there were testing challenges that impacted a
milestone if they were not paid on the weekly/bimonthly, whatever salary
payment schedule is what the company uses? In such a scenario, would your
company stop paying you your salary when it was due?

 

Rachel Foerster

847-872-8070

 

From: [email protected] [mailto:[email protected]] On Behalf Of
Jason McMahon
Sent: Wednesday, April 06, 2011 10:38 AM
To: 'Rich Silva'; [email protected]
Subject: RE: [EDI-L] <MISC> - To all Contractors out there

 

  

The only comparable clause I have seen is half down and the other half on
completion/delivery. Billable hours are usually reviewed weekly with
updates given to the person in charge. And the fact that delays are
inevitable, payment could be a long time in coming.

Sincerely,

Jason McMahon

8079 Village Drive

Cincinnati, OH 45242-4315

<mailto:[email protected] <mailto:gutausse%40cinci.rr.com> >
[email protected] <mailto:gutausse%40cinci.rr.com> 

http://gutausse.weebly.com/articles.html

<http://gutausse.blogspot.com> http://gutausse.blogspot.com

<http://www.linkedin.com/pub/jason-mcmahon/11/743/51b>
http://www.linkedin.com/pub/jason-mcmahon/11/743/51b

_____ 

From: [email protected] <mailto:EDI-L%40yahoogroups.com>
[mailto:[email protected] <mailto:EDI-L%40yahoogroups.com> ] On Behalf
Of Rich
Silva
Sent: Wednesday, April 06, 2011 11:24 AM
To: [email protected] <mailto:EDI-L%40yahoogroups.com> 
Subject: [EDI-L] <MISC> - To all Contractors out there

Or those of you with Contracting experience… OK, any of you…. Feel free to
chime in…

A prospective client of mine (their lawyers anyway) have asked that I add a
clause to “Exhibit A of the Contractors Agreement” (Exhibit A, in their case
is basically the place where I put in my billing terms…) that goes something
like

“…payment is not due until testing has been approved and completed…”

I have a lot of issue with this, not only because it holds up payment on the
entire contract until the end (and I am in no condition to support that) but
because it also leaves me no leverage if they decide to withhold payment
(for any reason)… I’d have made my “deliveries” and its not like I could
“remove” them… (Other than legal).

Not to mention that “Now” I/we will have to negotiate and agree on
“Acceptance Criteria” which so far has been loosely “make it work”…

(For a bit of context, it’s a multi month contract… Currently labeled as a
“Phase 1” (of at least three)… And both sides (myself and my contacts within
the company) are hoping that this turns into a “long friendly relationship”…

I was curious if any of you have seen anything like this…

And if any of you have some alternative positions I might offer while I
negotiate around this issue?

Thanx, 

Rich

Description: Wizard Clip Art SigRichard Silva

Silva Software Services – United States

Phone: (310) 387-8364

Email: <mailto:[email protected] <mailto:RichSilv%40Pacbell.net>
<mailto:RichSilv%40Pacbell.net> >
[email protected] <mailto:RichSilv%40Pacbell.net>
<mailto:RichSilv%40Pacbell.net> 

ü Please consider the environment before printing this email.

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