I'm in charge of the HR and finance in our company. We recently had our interiors designed by an architect. The architect took more than 2 months extra over the actual contract period and didn't complete the work on time. In addition, he used inferior quality materials; therefore, we had to end the working relationship with him. When asked for an invoice, he sent the estimate that was quoted by him even before the work started. This invoice also has items for which he hasn't worked.

However, as per our contract, we originally agreed that the final bill would be based on the actual costs and the site measurements. He now refuses to send an invoice based on the actuals and refuses to produce the actual bills for the materials purchased. In addition, he doesn't want to prove that his invoice amounts are genuine.

As a company, how do we handle this? We are very ethical and honest in our dealings and don't want to deprive anybody of their earnings, but at the same time, we don't want to be fooled either. Can we take this issue legally (we have a signed contract)? What would be the implications? Or can we settle this payment issue any other way without making this legal?

Please, can anybody advise?

From India, Madras
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Hi, Please send me the terms of the contract to my email id: mishra.arunk@gmail.com. Also, ask your technical team to take a measurement of the work done actually. Ask your said contractor to send his expert within three days to finalize the deal. If he fails, you may appoint an independent expert and seek his opinion in writing on the actual cost of construction. After doing all exercises, ask your contractor to cooperate; otherwise, face the damages done to your firm strictly in accordance with the law.

Regards,
Arun K Mishra


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In the States, such conduct on the part of a contractor is unconscionable. Where the contractor has not completed the work per the contract and since you required another to finish the job, the contractor is liable (assuming the contract or Indian Law holds him to the bargain) for all expenses and penalties resulting from his poor performance.

If the contractor knew, or should have known, that the work was beyond his capabilities, he should have made that fact known before he started the job. Now you want to pay him for his incompetence??

Send a letter with your invoice indicating that if the matter is not resolved in a reasonable amount of time (30 days), you will seek legal advice. (Copy in-house counsel/outside attorney)

From United States,
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Hello,

Do any of you know a legal organization or an individual that specializes in such dispute resolutions? In addition, if we would like to have another architect verify this contractor's work, will the architect also be involved in dispute resolution?

How do other companies handle this? I guess going legally wouldn't be a quick process as there are already huge amounts of pending cases in courts.

By the way, does anybody know what would be the costs incurred if this matter were to be settled by dispute resolution agencies?

Any help in this regard would be greatly appreciated.

Thanks, Felix.J

From India, Madras
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