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Client Stalling Projects & Billing Implications

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Katie Baxter
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We have had instances where clients stall on a job which then prevents us from moving forward with completing the work ( and being compensated accordingly). To be clear, it's not that they are uncommunicative (we already say if you go dark for more than 30 days, we reserve the right to walk away and close out/bill the job for work to date). But even if they are communicative, they may say "well, I'm working on reviewing it.." and another week goes by and before ya know it, it's been a month or two months without real progress.

Anyone have any insight to share on how this can be addressed in a contract and what sort of obligations or penalties you put in place?

Thank you in advance.

-Katie Baxter, VP Operations, Firmidable

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JeffKlingberg
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Katie ... I've been through this and currently going through it now. It's a royal pain in this butt along with the fact that the client has not been paying its bills in full as well.

We have the following clauses in our terms and conditions.

Project Suspension. Should work be suspended at the request of the Client, or delayed through any default of the Client for a period of thirty
(30) days, Mountain Stream Group will deem the Project closed, and shall then be entitled to payments for work already carried out and
materials specially produced. If Client requests to restart a Project which has been deemed closed, we will charge Client a Project Reactivation Fee as described in Clause 4.8, and issue a new Estimate or Proposal based on the current Project specifications. We will not commence work until we are in receipt of the items listed in Clause 2.10.

Project Reactivation Fee. If Client lets a Project become closed as described in Clause 2.15, and Client requests to reactive the Project we
will charge Client a reactivation fee of three (3) hours at our standard hourly rate. Reactivation fee must be paid before we will commence work
on the Project.

Since we gave the client to pay in five installments we are continuing to bill them the installments even though they have not replied to our requests, since the project is a fixed fee.

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Darlene
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Hello Katie

I currently have this same question and came across your post today. Wondering what you ended up doing in regards to this problem...

Thanks, Darlene

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