Client wants to add performance penalty into contract at very last minute - HELP!

(15 Posts)
MrsMargoLeadbetter Wed 12-Jun-13 20:24:45

Thanks for update.

Well done!!!

Good luck with the project.

Well done.

WilsonFrickett Wed 12-Jun-13 19:56:50

Yay! I LOVE it when that happens grin

katatonic Wed 12-Jun-13 19:39:53

Message withdrawn at poster's request.

suebfg Tue 11-Jun-13 20:35:36

I think your client is being unreasonable and if they are a FTSE200 customer, they should know better than treating their small suppliers in that way.

very well said.

katatonic Tue 11-Jun-13 18:14:29

Message withdrawn at poster's request.

BettyandDon Tue 11-Jun-13 17:41:11

How many other companies are bidding for this contract?

WilsonFrickett Tue 11-Jun-13 17:33:27

I can see why this has come up - probably over some sort of brainstorming session some bright spark has said 'hey, katatonic isn't really invested in this project so we need to incentivise them.' They are also I think trying to make sure you manage the freelancers properly, and that you put effort in to making sure they are engaged.

But if you have already dropped your fees I don't think this is fair, so agree with others, this isn't a good deal for you. I'd be tempted to say 'we've already dropped our fees so no, that doesn't work for us, however if you want to motivate us a lump sum on winning the project (based on half of your fee drop) would be most welcome, thank you.'

Is there anything else you want from them - more business (immediate business, not in the future or dependent on the contract), access to their contacts, joint PR - that could be used as a non-financial incentive?

Glenshee Tue 11-Jun-13 10:26:30

If your quote is based on time and effort required to do the job, then surely you have to spend that time and effort (not 80% of it) regardless of the outcome.

The client tries to negotiate your price down. This isn't evil per se, in fact quite common, but you shouldn't agree to this purely because of the pressure that is applied to you. (Particularly if you can't afford it).

katatonic Tue 11-Jun-13 09:30:52

Message withdrawn at poster's request.

Surely their terms do not "incentivise" you for getting the Gov contract, they penalise you while you work towards it!
I would suggest a better incentive would be a meal out/bottle of naice wine/hamper on winning the contract would work as a better incentive, as it is they are risking your resenting the arrangement.
I assume the Gov contract means a lot to them, and they need your services to secure it. I'd be inclined to call them on this, refuse the change in contract, and suggest an alternative incentive that's actually an incentive!

MrsMargoLeadbetter Mon 10-Jun-13 22:53:49

Sorry to hear of this katatonic.

My first thought is - do you actually want to work with this client going forward if they feel this is an ok way to act? They sound like they are valuable in £, but I wonder if they'll try to pull further stunts throughout the process....

I have walked away from things before because I just knew they were going to be too much trouble. It feels weird to do so, but sometimes you have to follow your instinct.

Is your work (and that of the freelancers) restricted to helping them bid for the project or do you potentially end up with work from the Gov contract too? I guess that will influence your decision as it will impact on the value to you.

I think you have 2 choices:

1) Say no unfortunately that won't work, we have agreed a price and that is it and call their bluff. Are they really going to be able to find another org to slot into your role to do the work at short notice? This also sends out a good message that you aren't to be mucked around.

However, the downside is that they might walk away, so you lose the income. Will you also be liable to owe the freelancers any money?

2) Negotiate around the 10/20% and as OneHand suggests ask for an overall uplift. At least if you have tried to agree a better deal, it again sends the message that you won't just accept their approach/being messed about.

I am sure you don't want to lose the work, but if you are tied up for x months earning 80% of your day rate, it could end up costing you to carry on with this client. I just don't see why you should have to take on the risk of their business development to be honest.

Obviously all of this is easy for me to say as it isn't my business...

Not sure if this helps.

OneHandFlapping Mon 10-Jun-13 17:56:00

Tell them that as this wasn't a requirement, you haven't priced that risk into your fee and that if they want this clause, then your base fee will be eg 5 percent higher.

katatonic Mon 10-Jun-13 17:51:40

Message withdrawn at poster's request.

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