Contracts and Getting Paid For Your Work

We all know that written contracts are signed and agreed upon by clients and consultants to protect them legally and to spell out what is and isn¹t expected from both parties. (Handshake and verbal agreements are included in this, legally, as well. It is always best to have it in writing anyway.) But what happens when the contract is breached by one party?

Lately, and especially in this rough economy, there have been several incidents where a handful of my colleagues and I haven’t been paid in full and according to the contract for our work. (WARNING, small rant about to happen) In this day and age, I don¹t understand why people bother to sign contracts and then ignore them, sometimes on purpose. This is one of my biggest pet peeves. (Ok, I¹m done.) And while there are a few reasons (or are they excuses?) that these situations seem to have occurred: client dissatisfaction with results, no money coming in so it can’t go out, simply not wanting to pay, and claims that partnerships have been dissolved there is simply no reason that consultants shouldn¹t be paid for their time and efforts.

Are the above reasons valid enough for the client not to pay for work completed? I think maybe the “no money coming in so it can’t go out” is fairly valid for a few weeks or months. We’re all struggling to pay our bills right now. As for the client dissatisfaction with results, the client needs to be gently reminded that there are no guarantees with PR (unlike advertising), and that, as the consultant, you have given 100% effort on their behalf. But on all accounts, the consultants earned their paycheck and need to be paid for their work.

What to do?

There are a few options that consultants can exercise in order to get their payment, and I¹d like to remind readers that it¹s best to take the high road when you can: