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jmm1979

Junior Member
What is the name of your state (only U.S. law)? Arkansas needing to Sue in Tennessee

We are a commercial Janitorial service. We recently subcontracted some retail store accounts with a national contractor out of Tennessee. We agreed nd signed the terms of their written contract since it made sense at the time. The signed contract stipulated that there would be no modifications to the agreement or the payment thereof unless agreed upon in writing by both parties.

We signed an Exhibit that agreed to a lump sum payout of x dollars per month for all these services...
1. General Cleaning 3 days a week
2. Stripping waxing floors
3. Cleaning Carpets
4. We were also required to supply all cleaning supplies, equipment, including all tissue paper, trash bags, paper towels, etc.

None of these items were itemized. One monthly lump sum for services. The contract does not call for any rite to reduce the payment.

3 months into the agreement, we were asked to longer provide tissue paper, paper towels, trash bags as they are going to start purchasing them from someone else. This was a company wide decision, all cleaners nationally complied.

We never signed an ammendment. We never agreed to a rduction in pay, as there was no possible way to determine the cost of supplies and properly deduct them from the invoice, because there was no itemization of these items in the original agreement.

We continue to bill them (for Janitorial services) as we always have done none of the services billed have been for restroom supplies. They reduce the payment to us of 120.00 saying we no longer provided supplies and therefore the paymeny needed to us needed to be reduced.

They still owe us now nearly 1,500.00 and they are threatening not to pay us any money for our services now. They are avoiding our phone calls, the last conversation we had the owner of the company hung up the phone on me. Do I have a case?
 


Antigone*

Senior Member
What is the name of your state (only U.S. law)? Arkansas needing to Sue in Tennessee

We are a commercial Janitorial service. We recently subcontracted some retail store accounts with a national contractor out of Tennessee. We agreed nd signed the terms of their written contract since it made sense at the time. The signed contract stipulated that there would be no modifications to the agreement or the payment thereof unless agreed upon in writing by both parties.

We signed an Exhibit that agreed to a lump sum payout of x dollars per month for all these services...
1. General Cleaning 3 days a week
2. Stripping waxing floors
3. Cleaning Carpets
4. We were also required to supply all cleaning supplies, equipment, including all tissue paper, trash bags, paper towels, etc.

None of these items were itemized. One monthly lump sum for services. The contract does not call for any rite to reduce the payment.

3 months into the agreement, we were asked to longer provide tissue paper, paper towels, trash bags as they are going to start purchasing them from someone else. This was a company wide decision, all cleaners nationally complied.

We never signed an ammendment. We never agreed to a rduction in pay, as there was no possible way to determine the cost of supplies and properly deduct them from the invoice, because there was no itemization of these items in the original agreement.

We continue to bill them (for Janitorial services) as we always have done none of the services billed have been for restroom supplies. They reduce the payment to us of 120.00 saying we no longer provided supplies and therefore the paymeny needed to us needed to be reduced.

They still owe us now nearly 1,500.00 and they are threatening not to pay us any money for our services now. They are avoiding our phone calls, the last conversation we had the owner of the company hung up the phone on me. Do I have a case?
Why on earth would you risk losing a whole contract over a minor financial amendment to the agreement? Your hard nose attitude is going to lose you a customer and also pose reputational risk to your firm.
 

jmm1979

Junior Member
Why on earth would you risk losing a whole contract over a minor financial amendment to the agreement? Your hard nose attitude is going to lose you a customer and also pose reputational risk to your firm.
Their account is deliquent as with any of our customers we do not provide services to customers that do not provide payment as agreed upon in our terms. I wonder if the utility companies will continue providing services without payment?

We also suspended services until payment is made and their account is brought current.
 

jmm1979

Junior Member
Why on earth would you risk losing a whole contract over a minor financial amendment to the agreement? Your hard nose attitude is going to lose you a customer and also pose reputational risk to your firm.
just let the big guys bully the little guys around is that what you are saying antigone?
 

Antigone*

Senior Member
just let the big guys bully the little guys around is that what you are saying antigone?
No, I'm saying it would have been better business for you to give a little up front to keep your customer happy long term. But since you can't see that then all I have to say is


Tigi out.:cool:
 

jmm1979

Junior Member
No, I'm saying it would have been better business for you to give a little up front to keep your customer happy long term. But since you can't see that then all I have to say is


Tigi out.:cool:
I hear what you are saying, but What if you already contracted the contract in the beginning at the bottom line? What if the negotions had already taken place between both companies, and you (the little guy) can not afford an additional loss?
 

LdiJ

Senior Member
I hear what you are saying, but What if you already contracted the contract in the beginning at the bottom line? What if the negotions had already taken place between both companies, and you (the little guy) can not afford an additional loss?
I think I disagree with Tigi...Giving a little can be smart, but not if you are not getting paid. There comes a point when losing a customer is better than working for free.
 

jmm1979

Junior Member
I think I disagree with Tigi...Giving a little can be smart, but not if you are not getting paid. There comes a point when losing a customer is better than working for free.
Here is the question at hand If you are a sub contractor, and there is a witten contract, does a company have the legal right to choose what they want to pay or what they feel is necessary to pay regardless of the charges for your services especially if the right was not given in writing contrctually. I am not so hungry that I am willing to work or free. Food stamps is just a little paperwork and time spent. LOL
 

tranquility

Senior Member
Who is the "them" you are billing? It seems your contract is with the contractor you subcontract from. Your dispute is with them. If the company is not paying you, your complaint is not with them.

By not accepting the change of $120 offered by what seems to be the company, you may have breached the contract they made with the contractor.

No one can tell what your options are without reading all the contracts. This will be harder to resolve than a small claims suit.
 

jmm1979

Junior Member
Who is the "them" you are billing? It seems your contract is with the contractor you subcontract from. Your dispute is with them. If the company is not paying you, your complaint is not with them.

By not accepting the change of $120 offered by what seems to be the company, you may have breached the contract they made with the contractor.

No one can tell what your options are without reading all the contracts. This will be harder to resolve than a small claims suit.
The "Them" is the contractor with whom I hold contract. All payments is made by the contractor, all bills are sent to the contractor. The charge of 120.00 was a deduction they (contractor) made from the monthly payout without notice, without agreement. Just taking deductions at their (contractors) whim. The contract we (contractor and us) signed did not allow for this.
 
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jmm1979

Junior Member
Is your customer delinquent only because of the deduction they made?
Yes, and they said today they do not intend to pay for additional two months services totalling to now nearly 1,450.00. They are upset because we suspended services for delinquency. The contract doesnt allow for this either.
 

OHRoadwarrior

Senior Member
Before beating your chest on Culps Hill, have you actually sat down and calculated how much your cost of all the "tissue paper, paper towels and trash bags" was? When a corporate office advises a Regional Manager how things are going to be done, he does it or gets canned. It appears he wants to continue the contract, but needs to do it under slightly modified terms.
 
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jmm1979

Junior Member
Before beating your chest on Culps Hill, have you actually sat down and calculated how much your cost of all the "tissue paper, paper towels and trash bags" was?
It was around $25.00 a month. We get discounts for the bulk we purchase. It is hard to determine the cost because it is hard to determine the rate of usage. That is why it is standard for many of these contracts to include those supplies rather than itemize them.
 

jmm1979

Junior Member
It was around $25.00 a month. We get discounts for the bulk we purchase. It is hard to determine the cost because it is hard to determine the rate of usage. That is why it is standard for many of these contracts to include those supplies rather than itemize them.
A new contract should have been negotiated, but the Contractor led us to believe that everything would be the same except that we would not provide supplies. We even received a good news email from the contractor giving us the good news that we no longer had to provide these items. Nothing was mentioned about a reduction or renegotiation.
 

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