Client wants to cancel the order - HELP?

[TheLittleDesignShop]

Hi Everyone

I am hoping someone could advise me as to where I stand on this one!

The client (A government body) placed the order for 500 printed items on 24/08/10. This was supported by official Purchase Order documentation. This afternoon I received an email requesting the cancellation of the order as the board 'have rejected the order request'.

The job is estimated to be delivered on Tuesday 7th September. The printer advises me the job is 95% complete! They will therefore want 95% of the estimated costs which is a few thousand pounds

I don't have insurance, so I can't claim on that.

So where does that leave me? Any advice would be most gratefully received.

Here's hoping someone here can help, I'm going to the pub to try and calm down, or is that to at least temporarily forget about it!!!

 

[Merchant UK]

Email?? Should of been done on official printed letterhead. if you've had the purchase order, and then committed yourself to doing the work, then its too late to cancel, I would ignore the email, and just carry on as normal,

If they don't pay take them to the small claims court, after all you have the official purchase order. What does it say in your T&C about cancellations???

if you've not got that upto date do it now!!!

Cheeky beggers

Good Luck

 

[Justin_B]

In much the same way that your printer is telling you the job is almost compete - you must say the same to your customer. The purchase order should be enough to get them to pay for the work you've done. I wouldn't panic yet!

Keep us posted.

 

[Ernest Andy]

Yeah what Justin just said.

 

[Mike W]

Ditto to Justin (and Andy). Just be firm

 

[TheLittleDesignShop]

Thank you, I feel a bit better now after a pint

I think you are right and I should hold my ground, after all I have done exactly as requested.

I may well be back looking for more help depending on how it goes.

Thanks again

Craig

 

[mit74]

do you have a contract with them?

 

[Bri]

do you have a contract with them?

Purchase order constitutes a contract its binding.

As its now 4 sept did your quote state a delivery/processing date.If not dont worry its for the issuer of the purchase order to defend to the board not you, however on a sour note it may take you a bit of time and patience in getting them to pay the invoice( dont delay, get the invoice in now)

 

[kangke]

I know your situation,if you tell client everything and need him to pay for the work you have done,you will be afraid of you can get order from your customer in the futher,but it is not a small amount of money,that you should evaluate it through before you take action.

 

[Lime One]

If you want a legal opinion let me have a look at the paperwork and I can let you know where you stand.

 

[boogs]

My wife runs a training company and had a contract with a prison to deliver training to staff two days a month for two years. She did the training for a few months and then they stopped agreeing dates for the coming months because they had a change of governor. Months went by without anything and finally they agreed to a meeting (which she travelled to - the other end of the country at her expense) where she was told they didn't want the training any more. When she said she had a contract with them they said it wasn't valid without a purchase order. No mention of a purchase order in the contract.

I told her she should sue them but she was worried that if she did it may effect her other work she has with other prisons and government agencies.

They are all the worse payers in the world anyway - she often has to wait 3 months to get paid and is given the run around when she tries to chase. I always thought the government said it would lead by example but obviously they were just weasel words like everything else they say.

 

[Ernest Andy]

My wife runs a training company and had a contract with a prison to deliver training to staff two days a month for two years. She did the training for a few months and then they stopped agreeing dates for the coming months because they had a change of governor. Months went by without anything and finally they agreed to a meeting (which she travelled to - the other end of the country at her expense) where she was told they didn't want the training any more. When she said she had a contract with them they said it wasn't valid without a purchase order. No mention of a purchase order in the contract.

I told her she should sue them but she was worried that if she did it may effect her other work she has with other prisons and government agencies.

They are all the worse payers in the world anyway - she often has to wait 3 months to get paid and is given the run around when she tries to chase. I always thought the government said it would lead by example but obviously they were just weasel words like everything else they say.

I'm sorry to say that this could be a put it down to experience situation. Never assume that the government will be true to it's word. The country is essentially run like a business. I am in education (not related to state funding) and all payments are in advance or nothing doing. Perhaps this is not possible in her industry?

 

[Dawg]

I'm sorry to say that this could be a put it down to experience situation. Never assume that the government will be true to it's word. The country is essentially run like a business. I am in education (not related to state funding) and all payments are in advance or nothing doing. Perhaps this is not possible in her industry?

Interesting points. However:

In business, at some stage you have to trust the other party. In countries where the trust levels are low, (usually due to corruption and incompetence), business activity is low and people are poor. Here the trust seems to have been broken but is backed up by a purchase order: this is enforceable in law which is the back up to trust.

If the country was run like a business they would have to pay for what they ordered.

If all payments had to be made in advance the economy would grind to a halt. It just would not work. Credit makes the economy work.

Out of interest, which sector of education is it that demands cash up front for everything?

 

[Ernest Andy]

Interesting points. However:

In business, at some stage you have to trust the other party. In countries where the trust levels are low, (usually due to corruption and incompetence), business activity is low and people are poor. Here the trust seems to have been broken but is backed up by a purchase order: this is enforceable in law which is the back up to trust.

If the country was run like a business they would have to pay for what they ordered.

If all payments had to be made in advance the economy would grind to a halt. It just would not work. Credit makes the economy work.

Out of interest, which sector of education is it that demands cash up front for everything?

All private education as far as I am aware, apart from occasionally when a student is sponsored by government.

By the way, just to be clear, my post was in response to the post about prison training, not the OP, and no purchase order was produced, which may allow the state funded organisation to back out. Having said that I'm not a lawyer and don't know if a claim against the prison service would be worth pursuing. The poster seemed reluctant on grounds of continuing their otherwise happy relationship with the prison service.

 

[simply.biz]

Sounds familiar. Whether they are a Government body or a small business, if they have raised a purchase order and have instructed you to carry out work, that is contractually binding.

My advice to you would be to firstly tell the client that the work has already started (on their instruction) and therefore, you are unable to cancel. They will have to pay for any costs you have incurred including your own time. You have the purchase order therefore the work has been agreed and assigned.

If they still disagree, you have the right to take them to court which I would politely but firmly remind them of. Don't be bullied just because they think they can get away with it - the whole "Big I Am" syndrome.

It might also be wise to tell your printers what is happening. Honesty is the best policy in these situations.

Lastly, get some "Terms of Business" drawn up for any future work with new or existing clients and supply a copy prior to commencing any work. Seeing they have had sight of them, they have to agree to them and you are far more protected.

 

[TheLittleDesignShop]

I ended up taking delivery of the job (it was initially intended to be delivered direct to them), on the understanding they would be 'called off' as and when required. I delivered the last ones of the order in to them last week. I still haven't received payment for the invoice but I feel confident it will be paid as they have all now been delivered. Thanks everyone for your advice. I was so down when the cancel request came in, but, your replies made me feel I was in a good position so should carry on! Whether I'll get any future orders though is not looking promising! But then again anyone on here who works with Government agencies must be feeling the same way. I so hope we can get out of this dip soon!!!