Penalty for late delivery?
Thread poster: Kwei Chang

Kwei Chang  Identity Verified
United States
Local time: 08:42
English to Chinese
+ ...
Oct 18, 2004

a hypothetical case:

your project has three files, you finish 2 in time, but the third one is one week late.
Can the agent justify not to pay you at all.

[Subject edited by staff or moderator 2004-10-18 13:34]


 

Karin Adamczyk  Identity Verified
Canada
Local time: 09:42
Member
French to English
Depends on what was agreed Oct 18, 2004

Kwei Chang wrote:

a hypothetical case:

your project has three files, you finish 2 in time, but the third one is one week late.
Can the agent justify not to pay you at all.

[Subject edited by staff or moderator 2004-10-18 13:34]


That all depends on the penalty clause in the contract.

BTW, did you inform the client of the late delivery?

FWIW, penalty clauses in other industries sometimes stipulate such heavy fines (usually by phase), that the contractor is not only not paid for a given delivery, but owes money to the project owner. These fines exist to ensure that contractors deliver on time.

Being late is a very serious issue. If this was for an agency, it may cost the agency the client or seriously damage its reputation. There may also be serious financial consequences. Imagine, for example, that your files were part of a required filing, or part of a Web site to be launched on a given date, or part of a bid package.

FWIW,
Karin Adamczyk


 


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