I'm dealing with a frustrating situation after working on a contract for about four months. The client hired me to overhaul their ML stack, which involved setting up proper infrastructure on AWS, making their LLM models production-ready, and implementing observability tools. My payment was split into three milestones of $6k each, but after completing the second milestone, I only received $2.5k instead of the full amount. They claimed they were reviewing costs quarterly. Now that I've nearly completed the project, they're offering me just $3.2k as a completion bonus, claiming the timeline extended and there were unanticipated infrastructure costs. I feel that I've delivered significant value, with metrics showing improved performance and lowered costs. Should I accept this offer or push back? Has anyone else faced a similar situation?
7 Answers
You could consider small claims court given the amount owed, but check your local laws since limits may vary. Also, look at your contract; it should specify jurisdiction and any arbitration clauses. If it's lacking these details, you're in a tricky position. Maybe try sending a formal demand letter before taking further action? It shows you're serious without jumping straight to legal measures.
It sucks they're trying to hold back payment after all that hard work. Make sure you evaluate how much time you actually spent on work not paid for. Push back if you can; they might buckle under pressure, especially if you're not overwhelmed with other tasks right now.
Do you have a signed contract outlining the agreed milestones? It’s key to have that in place. If the scope changed, did you get written approval for that? Not doing so can put you in a vulnerable position. You might want to be firm about any changes moving forward.
Yeah, I do have a contract, but I realize now I was too accommodating with the scope changes. They'd ask for modifications casually, and I did them without a formal approval process.
You gotta remember, you're running a business here. If they aren’t honoring the payment terms, don’t hesitate to go after them legally or put pressure by pausing work until they pay you. It's a common part of contract work, and you deserve to be compensated for your efforts.
It sounds like a tough spot, but it's crucial to set clear expectations upfront. In my experience, I always draft a detailed spec document with milestones and send an invoice after each one. This helps ensure that I don't end up with several unpaid invoices. If payments are late, I make it clear that further work will pause until I get paid. Milestones should be meaningful enough so that clients need the final one for project completion, ensuring payment is a priority.
So frustrating! They’re obviously trying to get away with paying a fraction of what you deserve after you delivered serious value. I’d definitely suggest being firm and returning with demand letters or even considering small claims if needed. If their offers continue to fall short, showing that you’re prepared to take action might make them rethink.
Honestly, you should consider how undervalued you were even before this. The work you've done was worth way more than even the full $18k. Maintain your worth and don’t be afraid to demand the compensation you deserve.
That sounds like a reasonable first step. Even if it's an international issue, a demand letter might make them take you more seriously and could prompt them to pay up.