Sunday, April 19, 2015

Test & Learn



The last few years have been a really interesting adventure for me - I've set up two businesses and things are moving in the right direction. Along the way I've made some mistakes but more importantly; learnt from them.

Hopefully :)

This one relates to B2B late payments and lessons learned in preventing the situation. It's definitely worth getting a background in your monetary rights from UK Plc too.

When I first started it would have been fair to say that I was a novice in the world of contracting and it's nuances - Only good advice from my accountants and contractor colleagues really got me moving. However it was soon clear that even that wouldn't solve the underlying problem: What do you do if the customer doesn't take your invoice due dates seriously?

The first example is from my time working as a contractor for Woodrow Mercer. I don't think the recruiters themselves are really at fault but that doesn't excuse the accounting department. Most agencies seem to have rude and unprofessional accounts department staff - with few exceptions - and they frequently seem to attempt to bully or turn their nose up at contractors.

One agency, ERG, were particularly bad at this back in 2012 - I was sent threatening emails from senior recruiters and directors when I terminated the contract with them. They made wild [incorrect] guesses about where I'd taken the next contract and on recruiter even attempted to get in touch with relevant hiring managers. It was all bluster, aiming to play on the submissive psyche normally present in technical people. However I just prepared the particulars of claim document I'd need to take them to court for non-payment - they paid before the deadline to pay expired though.

Woodrow Mercer failed to pay on time on three separate occasions - the worst thing about this was that the client involved were such a nice bunch to work for. Really well gelled group of people who enjoy what they do. The second time payments were missed there was no excuses or apologies from WM so I called them.

They sent me an abrupt email saying that they'd pay one invoice but the other would have to wait - regardless of the fact that they were legally obliged to pay on both invoices due dates. In that scenario they did pay, but one week late on one and two weeks late on the other invoice.

The third time they missed payments I'd had enough of being passed off with bluster and excuses - Had a word with the client manager and respectfully noted that I would not be returning to site until the invoices were settled. One invoice is still outstanding 11 months on although for a relatively nominal fee. They've since stated that they will "...rigorously defend.." any claim in the courts - I may update that with another approach depending on some parallel research.

Wind the clocks forward a year or so and two other agencies have attempted to bully their way out of late payments. In both cases both the contract and the invoice T's and C's supported an instant late charge along with interest growing daily.

Uniting Ambition fell short of the mark after neglecting to pay the final invoice on due date (I would have been fine with it had their been discussion beforehand, some reasonable negotiation solves a lot). They attempted to negotiate a portion of the fines but then paid in full when I delivered a "notice before action". If it was the first time they'd paid late I might have let it slide but they'd failed to pay every single contractor at that client (~30 people) on the first invoice date. No apology was given and only a few vague excuses. An inexcusable attitude.

In all cases a reasonable discussion up front prevents any of this - Just a phone call to say there's payment problems and that your invoice will be 5 days late will make a huge difference to your planning. Having said that consistent late payments should give you all the indication you need. Try doing some research first and getting a credit check of the company before you sign a contract with them. That's often due cause for respectfully requiring them to change the payment terms on your contract. Talk to your bank about their B2B credit checking offering. You can throw the payment terms on any contract they offer back at them if they telling you they do 30 days payment but their credit rating barely supports 7.

Normally a lot of contract terms in the UK make it very tricky in relation to IR35 - never mind just getting paid. Lots of unprofessional agencies initially reject requests to change the contract; "it's a standard contract we use for everyone and do not change it". It's all bullshit. A contract review by your accountant or legal representative is worth every penny.

I work with other types of organisation directly and although some of these problems are common elsewhere, the attitude towards invoice due dates is not. You've worked hard for your rate and perhaps even worked far away from home to do so, why should getting paid be a struggle?

The Sting Of Chlorine


We often take the kids swimming and one of the pools is in Harbone. Facilities are good, kids have fun and we get to do some lengths too. However I made the mistake of buying some replacement goggles from the pool shop in the leisure centre - leading to a standoff in the reception area.

During the swim the goggles leaked and no matter what grip or band settings I tried they just kept leaking. After we'd finished I took them back to the reception desk and explained what the fault was (I just wanted either a replacement or a refund).

However the staff claimed that they could not refund the value of the goggles as they were not defective, and that they were not obliged to do so. I pointed out that my statutory rights as a consumer, plus those of standing legislation meant that as I was not happy with the product I could get a full refund. I also pointed out that I would not move from the desk and allow them to serve anyone else until the matter was resolved.

Whilst the staff went into the office for a huddle - I felt a little sorry for them having to deal with their employer's misguided principals - and the queue behind me grew. This is a good way of ensuring that retailers acknowledge their responsibilities and speeding a resolution; it's too easy to email or write letters and take no ownership or involvement due to the dissociative nature of words on paper.

However I got caught out - distracted whilst updating the Twatterverse on minute-by-minute changes to the situation (as if anyone was actually reading my twitter feed), the manager asked me to step over to another area to talk about the resolution.... fell for it.

The spell broken and the other waiting customers started getting to the desk. Bargaining position lost and hat tipped for being bettered.

All I could get was a credit note for the value of the goggles bought that day and the heartfelt promise of a phone call when they had the goggles in stock next. Maybe they're still waiting for the next batch? Either way I'll go to Amazon in future - even if I can't stand at the sales desk and stop other people getting served before they sort out my purchase.

Trotter Lettings Esq.

I had the misfortune to take up residence in a flat managed by Reed Residential last year. The flat itself wasn't bad as a property - although it would have been better had there been heating during winter.

And therein lies the comedy.

The problem with the heating was reported to them during the xmas holidays so the first delay in response was simply due to no-one being in office. As the weeks past though, and as my continued phone calls started being deflected by "Oh I'm sorry, Adam isn't at his desk right now", or "Adams in a meeting at the moment, can I take a message?".

I started imagining that Adam was printing out my emails and then using the paper copies to fuel an open fire - whilst wearing shorts and a t-shirt because of the heat produced - whilst I was shivering under jumpers, paying a premium rent for the pleasure.

Estate agents are a known quantity so it wasn't a Herculean leap of the imagination to realise that the primary contact - Adam - was simply avoiding my calls. There was a visit from an engineer to size up replacements, then the landlord wasn't sure if he wanted to replace them. Then he was getting other quotes, then the engineer visited again to get other measurements.

Nothing was moving in any direction other than a fob off and Adam seemed to be to focused on using my emails for firewood. Until February.

Then I cancelled the rent monthly standing order  and waited. By this point I'd had enough and was moving out but I thought it would be interesting to see how long it took Adam (or anyone else at Reed Residential) to get back to me and start playing nicely.

The response was simply astounding - Almost two days after the rent was due I got two emails and four phone calls (three of those on a Saturday)...of course this wasn't to apologise for months of refrigeration / premium rents; nor was it to ask if there was anything they could do. No - it was simply to chase for missing rent. So I explained that once the flat was in a condition befitting the rent and inventory I would be happy to pay full rent but in the mean time I'd deducted an appropriate amount retrospectively [i.e. since the problem first occurred]- meaning no rent was due that particular month.

And now everything changed - suddenly radiator replacements were being flown in by winged chariots piloted by Valkyrie smoking Romeo y Julieta's; there had been no delay, simply a misunderstanding and should I not pay rent I would be taken to court and flayed by their eight storey tall lawyers.

Of course I'd already moved out at this stage so it was just for my own entertainment (causing them the same inconvenience they caused me).

The net result was that they kept the deposit and probably just about broke even, someone at Reed Residential was apparently relieved of their job (the eponymous Adam) and the world continued unabated. However the real comedy occurred a couple of months later and really highlighted the care taken for all of their customers and tenants.


Now its entertaining astounding for a number of reasons:
  • The apartment doesn't have a microwave, I had my own and never mentioned it to anyone at Reed
  • I'd moved out on 28th February and this email arrived 22nd April
  • I made no request relating to anything other than the basics. Like heating.
  • Pretty sure they're talking about a different apartment
  • Pretty sure that email should have gone to someone else
  • Someone else probably got angry at Reed for not delivering on their promises