Client changed request after purchasing hardware. Where do I stand?

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UPDATE 21st November 2012 - All done! http://forums.overclockers.co.uk/showpost.php?p=23210926&postcount=50

UPDATE 8th June 2012 - Anybody want to buy a server :p? http://forums.overclockers.co.uk/showpost.php?p=22092830&postcount=50

A few months ago I was introduced to a man running a business in need of some IT support by a relative. I spent time and effort going to the sites of his and assessing everything. My job was to assess a quotation they had been given by another company for a central server and all hardware needed to build a domain system. I produced a better quote and they asked me to do it instead.

I'm only an individual, full time student doing this sort of thing in my spare time, so I asked for a 50% payment (Here comes problem A, I don't know if I said payment, or deposit) which they gave. I then ordered all the parts (Worth more than the 50%) and they arrived. I configured and got everything ready, then tried to contact the company, who were reluctant to answer the phone or respond to emails.

A couple of months later they finally get back to me, asking for a meeting, which I went to yesterday. Now expecting to see the owner and the contact (Nice guy, sort of the middle man type thing), I was surprised to end up in a room with the contact, but instead of the owner, the new residential IT support woman and her note-taker. Why on earth they didn't give the internal IT staff the job in the first place I have no idea.

Anyway, the entire meeting she keeps disagreeing with everything I say, trying to discredit me and keeps insisting that they now want a cloud based system. I then ask what we're going to do with the current hardware, which she then lays claim to, stating that because they've partially paid for it, it is theirs (Obviously not that simply).

Anyway, I want out, the job is getting ridiculous and frankly I don't need the aggro, plus apart from anything it's now a completely different job to the one I originally agreed to, so what I'm planning to do is tell them that I will continue if they want a server system, but if they want a cloud system, I'm out, because even if I did want it, I don't know about cloud systems anyway.

The problem is with what has been purchased, I'm worried that they are going to ask for a refund, because if they do, the hardware is now 4 months old and thus worth less than what I paid for it, so I'd be out of pocket.

Am I right in thinking that because they paid half and agreed to the contract verbally, that they legally have to either pay the rest and have the hardware, or let me keep the 50% as a deposit and the hardware? I need some legal point else they'll just rip me to shreds...

As I say I'm a full time student, the job started small but now it's some huge operation that needs multiple cloud servers (Which I completely disagree with, but that's not the point).

Help is much appreciated!
 
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You got nothing in writing? Verbal agreements are pretty pointless since it's difficult to prove in court of law.
 
I have a detailed specification of the system to be put into place and a cashed cheque but that's about it.
 
Yes, they claim they never received the invoice but I definitely sent it and still have a copy (Not that that will prove much)
 
Bypass the IT monkeys. Send a letter to the MD explaining the situation rationally. Work out how much you would be out of pocket and request they either implement the system as per the original spec or they reimburse you for the cost you incurred.
 
Bypass the IT monkeys. Send a letter to the MD explaining the situation rationally. Work out how much you would be out of pocket and request they either implement the system as per the original spec or they reimburse you for the cost you incurred.

Sadly the owner / MD just passes this stuff off to these guys. So doing that would only make the staff more hostile no doubt. He's not really the kind of guy to concern himself with my problems believe me.

And they paid you as invoiced? i.e. The invoice details a deposit and it matches what they paid?

Their payment is of the same amount on the invoice if that's what you mean, yes.
 
You have an imply contract I would expect if it comes down to it.

The argument would be that you bought the equipment with their approval, model and costs.

They can't change their mind afterwards, especially when the work has been carried out. Send them a full invoice for the equipment.
 
This happens/happened to me quite a bit. Not on such a grand scale. If i can, i make them pay the HW order costs and then invoice them for the build config and my time separately. Not much consellation now i know.:(
 
Invoice them for the rest and give them the hardware and if they don't pay just keep everything, if everything happened as you explained it.

In the circumstances I would not extend any form of credit or rely on them to settle a creditor after receiving the goods. Balance on delivery only.
 
Right guys here's what I've added to the document I'm sending them, just looking for any input on whether it sounds right?

If a cloud based system is taken forward and implemented, there is still an issue of what to do with the current hardware. As it stands the server has been configured and is ready to be setup as a domain controller as was originally planned. If however this is no longer needed one of two things will need to happen.

Option A is that the outstanding balance of £1540.60 be paid. Should this be done all items of hardware will be delivered to <Customer Company> to do with as they wish.

Option B is for <Customer Company> to forfeit their deposit, at which point the hardware will be sold to recoup the outstanding balance. This option will mean that the hardware will remain property of <My Company>.
 
I'm sure most companies of this sort don't know what the hell they are getting into with this "cloud" stuff. For a start off, i wonder how many remain with the single, least cost, ADSL circuit to the internet thinking "well, it wasn't so much of a problem when it went off for 2 hours last time was it ?"
 
Don't enter negoiations regarding a cloud system, get them to warrant the current contract. If it is like you say, it's a pretty straight forward case.
Honour the current contract then run away.
 
Option B sounds like a lot of hassle for you AND being out of pocket.
Neither of which is any of your doing.

Stick to Option A... in fact don't give them an option. Just send the invoice for the outstanding balance as agreed.

Keep it simple..
You agreed this > You owe this.
Not paying? > See you in court.
 
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