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Client changing rates retrospectively.

  • 02-03-2010 3:30pm
    #1
    jimbling
    Registered Users, Registered Users 2 Posts: 4,051 ✭✭✭


    Basically, I have this client that has two of my personnel on there factory site. We were in there on a trial basis for just over two months at a given rate. There was a contract governing this.
    After the trial period was over we were given the go ahead for continuing the service. A new contract was not issued.
    We have been working away for two months when I got a phone call yesterday saying that the rates are being re-negotiated for all suppliers.

    That's fine, the issue I have is that they are putting the new rates in retrospectively for January and February. This seems like absolute madness to me. I can't figure how they can do this. Even with the lack of a contract for those two months. The personnel have been on site and have done the work that was required of them over that period.

    Can I argue this? push back and demand that Jan and Feb be paid at normal rate. New rates apply March onwards. Can they use the lack of contract against me on this count?
    Any other advice welcome.


Comments

  • #2
    DoMyBooks
    Registered Users, Registered Users 2 Posts: 355 ✭✭DoMyBooks


    It is very cheeky to do that, But the big question is are you prepared to push back on them to the point of loosing the contract. If you have lots of other contracts or you believe they need you more then you need them then you can do this. But if you are dependent on this contract then you need to thread carefully.

    Another thing to consider is their financial position. They may not be in a position to pay your fee's. Take a look at their recent accounts and see. I can do this for you if your stuck.


  • #3
    jimbling
    Registered Users, Registered Users 2 Posts: 4,051 ✭✭✭jimbling


    DoMyBooks wrote: »
    It is very cheeky to do that, But the big question is are you prepared to push back on them to the point of loosing the contract. If you have lots of other contracts or you believe they need you more then you need them then you can do this. But if you are dependent on this contract then you need to thread carefully.

    Another thing to consider is their financial position. They may not be in a position to pay your fee's. Take a look at their recent accounts and see. I can do this for you if your stuck.


    They are a multi-million dollar corporation.... they can pay all right. Although the reason for the cuts is that they're millions over budget on the current project.

    Ya, the big issue really is that they can replace us. Although what I normally do is unique, these guys aren't using my personnel in that manner. Just bums on seats.
    And we do need to keep the contract if we can. I guess we'll just have to push back a little bit but not be too stubborn. Perhaps we can get some sort of compensation.


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