The Cost of Doing No Business
I was working with a large national client here in Australia on a database. I’d completed work for this client on and off over the past 5 years or so with no problems. In fact, they were probably one of my favourite clients up until this point.
Until this happened.
Client: “Hey, so we need to kill this project. The company has decided to move in a different direction with regard to R&D operations, and the database is no longer required.”
Me: “Okay, well, that’s a shame as we were over 80% done. You have my invoices for the work completed so far, so once they’re paid, we’re all done.”
Client: “Yeah, because the project is being terminated prior to completion, the executive has said we can’t pay your invoices.”
Me: “Well, the work has been done, and you still need to pay me for it as per our contract. But if they’re refusing to pay, then I guess I’ll have to escalate.”
I then download a copy of the database onto my backup server and remove all of the work I’ve completed from the existing database on their SharePoint. I also began small claims proceedings.
A few hours later:
Client: “Hey, so where is all of the work you completed? The database is useless without it!
Me: “I removed it. You were paying me per hour to complete the work, but seeing as your executive has decided not to pay, you don’t get to see the fruits of my labour.”
Client: “But the database can’t work without it! What are we supposed to do?”
Me: “I thought your executive was going in a different direction?”
Client: “Well, yes, but that direction still involved the database in its current form.”
Me: “Well, good news, I have a database in prototype form I can give you. The cost is [my original contract fee + 20%].”
Client: “But that’s more than we were paying you!”
Me: “No, it’s more than the amount you were supposed to pay me. But you didn’t pay me at all, so now you can purchase the finished product for a premium.”
Client: “Fine. I’ll send over a purchase order.”
They ended up paying me for the finished product because, apparently, that came out of a different budget, which the executive was happy to spend.
