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Hello,
I am an independent contractor and on April 20th I signed an
agreement for a project lasting 12 months in duration with work to
begin on May 2nd. On April 21st, I filled out the consent form for
them to begin a background check. As work was to begin on May 2nd, the
client delayed the start date because they were having issues
performing the background check due to "problems with a new system
they implemented".
It is now May 13th and they are still experiencing these issues and
the background check has yet to be completed leaving me with no work
and no pay since the original agreed in writing start date of May 2nd.
Today, I was offered a new position with a different client which I am
seriously considering.
My question is, am I still bound by the original agreement? Am I wrong
in assuming that the client breached our agreement with the indefinite
delay for completing a background check (now over 20 days)?
I have a family to provide for and a mortgage to pay. Just waiting
around for the client to give me a definite start date while my bank
account gets lighter is seriously stressing me out.
If I back out of the deal, does the client have any recourse?
Thank you all for any help you can give.
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SJ <micetrap@earthlink.net> wrote:
I am an independent contractor and on April 20th I signed an
agreement for a project lasting 12 months in duration with work to
begin on May 2nd. On April 21st, I filled out the consent form for
them to begin a background check. As work was to begin on May 2nd, the
client delayed the start date because they were having issues
performing the background check due to "problems with a new system
they implemented".
It is now May 13th and they are still experiencing these issues and
the background check has yet to be completed leaving me with no work
and no pay since the original agreed in writing start date of May 2nd.
Today, I was offered a new position with a different client which I am
seriously considering.
I have been in the same situation three times. My solution was to
inform Client A that I was no longer available.
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You signed an agreement for a 12 month contract to begin May 2nd. As
of May 13, client is still delaying the contract, and has provided no
work or pay. Now you have an offer from another client, and want to
know if there is any way to leave the contract.
What does the contract say about termination? This is your first place
to look for the answer. If you break these terms, the client does have
grounds to sue for breach.
If the contract does not specify, then it is not a very good contract
for an independent contractor. As an IC, you are not subject to the
usual "At Will" employment of an employee. This is one of the factors
the IRS uses to determine if you really are independent, or simply an
employee by another name, and could even lead to your being
reclassified as an employee! In the future, make sure all contracts
cover this situation.
Assuming the contract does not specify any termination terms, this is
how I would proceed. I would contact the client, and politely let them
know that you are no longer available to work for them at this time.
In addition, you may be available in the future once they have things
ready on their end. This way, you don't burn any bridges, and if they
are at all reasonable, they should realize your position.
If the company does threaten you, I would point out that the contract
that they signed was supposed to begin on May 2nd; therefore, they may
be liable for your time since May 2nd, whether they used it or not.
This should give them pause before trying to pursue you with legal
action.
I would be very surprised if the client tried to sue. Most companies
are not going to waste time on something like this.
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In article <b26h81p5d5r3f9ilgoq0hdstrtfu597fpp@4ax.com>,
SJ <micetrap@earthlink.net> wrote:
Hello,
I am an independent contractor and on April 20th I signed an
agreement for a project lasting 12 months in duration with work to
begin on May 2nd. On April 21st, I filled out the consent form for
them to begin a background check. As work was to begin on May 2nd, the
client delayed the start date because they were having issues
performing the background check due to "problems with a new system
they implemented".
It is now May 13th and they are still experiencing these issues and
the background check has yet to be completed leaving me with no work
and no pay since the original agreed in writing start date of May 2nd.
Today, I was offered a new position with a different client which I am
seriously considering.
My question is, am I still bound by the original agreement? Am I wrong
in assuming that the client breached our agreement with the indefinite
delay for completing a background check (now over 20 days)?
In your position, I would call the original client, and tell them that
I could no longer afford to continue giving them cost-free
extensions. I would offer the option of them starting to pay me
immediately, and I'd start working whenever they wanted (including
immediately); or they could cancel the contract for a cancellation fee
of, say, 10% of the contracted amount. Then let them negotiate the
cancellation fee down or away.
If you start by cancelling, or by asking to cancel, they'll ask you to
wait another week, month, . . .
Seth
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