Hello everyone,
We have received an invoice from a trade contractor that includes items which are not justified. What is the best way to handle this situation? Here are the options I currently see:
1. Pay nothing and dispute the invoice.
2. Pay only the justified amount and dispute the rest.
Personally, I lean towards option 2, since there is a valid claim. However, part of the invoice is, in my opinion, unjustified (which will probably lead to discussions). Therefore, I am not sure if it might be better to withhold payment entirely at first.
Does anyone have experience with this?
We have received an invoice from a trade contractor that includes items which are not justified. What is the best way to handle this situation? Here are the options I currently see:
1. Pay nothing and dispute the invoice.
2. Pay only the justified amount and dispute the rest.
Personally, I lean towards option 2, since there is a valid claim. However, part of the invoice is, in my opinion, unjustified (which will probably lead to discussions). Therefore, I am not sure if it might be better to withhold payment entirely at first.
Does anyone have experience with this?
I often see this with architects. They clearly document on the invoice/invoice copy or on a separate form which items are removed or reduced, and then new totals are calculated. This is then sent to the client for approval.
I assume the invoice is also sent to the contractor again for their information.
That’s basically how I would do it as well.
Clearly document which items are removed, calculate new totals, and make the payment.
At the same time as the payment, send an email to the contractor stating that you have paid but have reduced the amount due to the following items or positions.
Finally, request a credit note or a revised invoice for your records.
I assume the invoice is also sent to the contractor again for their information.
That’s basically how I would do it as well.
Clearly document which items are removed, calculate new totals, and make the payment.
At the same time as the payment, send an email to the contractor stating that you have paid but have reduced the amount due to the following items or positions.
Finally, request a credit note or a revised invoice for your records.
A
Alessandro21 Jan 2021 07:29Definitely pay the undisputed part! For the unjustified items, send an objection by registered mail.
In case of a court dispute, the issue will concern only the value of the unpaid items, not the entire invoice.
This is always counted positively for the client/employer!
In case of a court dispute, the issue will concern only the value of the unpaid items, not the entire invoice.
This is always counted positively for the client/employer!
Bauherr am L schrieb:
Exactly, the question of whether a claim is justified or not is too complex for a forum.I couldn’t advise on anything because the information about the “matter” in question is missing. There is a complete lack of neutrality.H
hampshire21 Jan 2021 15:26If you stop communicating with your service provider, the arguing—as you call it—will continue anyway, whether you choose option 1 or 2. Arguments always involve at least two parties. Remaining silent won’t lead to any constructive outcome; you will have to engage in some form of dialogue one way or another. These two options are the ones lawyers profit from, and they usually lead to further escalation. I don’t find that pragmatic—not even if you have already clashed and this is the 25th point of dispute. Somehow, it came to this...
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Bauherr am L21 Jan 2021 15:37@hampshire I basically agree with you. However, we won’t be able to go into detail here. Of course, communication is important. I just want to know what the better approach is for the payment that is due shortly, or for not making that payment.
H
hampshire21 Jan 2021 15:42That’s fine, nothing needs to be unrolled here. If these two options are available, I consider option 2 the lesser evil.