I've found myself in a frustrating situation with a client who hasn't fully paid me for a contract I took on about four months ago. My role was to develop and manage an MLOps infrastructure on AWS to streamline their ML operations, which were a mess. We agreed on a fee of $18k divided into three stages: $6k for planning, implementation, and deployment/handoff. The first payment of $6k came through without issue. However, after I completed the second milestone, which involved automating their ML pipeline, I only received $2.5k, with the client claiming they were reviewing costs quarterly. I was patient, thinking I'd finish the project well and that they'd see the value. Now I've completed most of the work, significantly improving their operations, but when I invoiced for the final $6k, they offered me just $3.2k, citing extended timelines and unforeseen costs. Should I accept this lower amount to avoid conflict, or should I push back given the quality of work I've delivered? Has anyone else dealt with clients who try to shortchange them in similar situations?
8 Answers
It seems unfair that they are trying to shortchange you. Stick up for yourself—don't let them walk away with the benefits of your hard work!
Make sure you have a solid contract with clearly defined milestones. If you made scope changes, try to get formal sign-offs moving forward. It sounds like they may have taken advantage of your flexibility before—better safe than sorry!
It sounds like a tough situation! In the future, consider creating a detailed spec document outlining clear milestones and invoice after each stage. It's helped me ensure I'm paid for all my work without getting burned. If they miss more than one payment, stopping work until they settle is usually a good move to protect yourself.
Check local laws; you might be able to take them to small claims court for the unpaid balance. Usually, the limit is around $4k-$5k, dependent on where you are. But remember, your contract's jurisdiction and clauses play a big role here. If it’s vague, like not including arbitration, it can complicate things.
Good point! I’m in India and they’re in Washington. My contract doesn't have strong terms since I used a basic template. Do you think sending a formal demand letter is effective, or would that be a waste?
You are running a business, so act like one. If they don’t pay according to the agreed terms, consider sending them to collections or even pursuing legal action. Don’t just write this off; stand your ground until you get what’s owed.
If they owe you for the actual hours you worked and it’s significant, you might have a case. Focus on documenting everything to show how much work you've done that hasn't been paid for. Your value is there; you shouldn't settle for less!
If you're still on good terms with them, I’d suggest talking it out and reminding them of the impact of your work. But also be prepared to take further action if they don’t come through. Stand your ground!
I can understand your frustration! Honestly, if you aren't overwhelmed with other work, I’d push back and consider taking legal steps. Companies usually back down when they realize you're serious about getting paid for your contributions.
Yeah, that's one area where I slipped up for sure. I was trying to be accommodating, but I should have pushed for formal requests. Lesson learned!