9
OPINION
Get paid or get resolution
D uring the regular course of their business, design firms sometimes encounter issues where they have a significant account receivable pending with a client. Small, medium, or large, firms of every size should have a regular process in place for collection of their fees.
In some instances, the design firm writes the unpaid fees off as a loss. Sometimes, it agrees to a reduced amount but doesn’t receive anything in return. In other cases, the design firm continues to bill the client regularly without receiving any payments whatsoever. Some design firms have been involved in matters where invoices have been pending for so long that potential fee claims were barred by time restrictions. Another common practice: A firm performs additional services after an issue occurred on a project for which they either did or did not bill the client. Sometimes, design work done as an additional service becomes part of a claim made against the design professional. Unfortunately, not billing for services rendered may be perceived by the client – and others should a dispute arise – as an admission of at least partial responsibility. Given the time and effort invested in a project, design firms shouldn’t simply walk away from
their receivables. Small, medium, or large, firms of every size should have a regular process in place for collection of their fees. This might involve the following measures: 1. Follow up with the client regarding any outstanding invoices on a regular basis. This should be done professionally and in keeping with the contract. 2. Document any reason for non-payment. If the client is not paying you, and provides a reason for the nonpayment, that reason should be documented in a follow-up email to the client. The message should be retained in a specific folder. This process should occur each time such an exchange takes place. Often, reasons cited change by the end of a project. So, when a client tells you the reason, simply confirm it in a
Lauren Rhodes Martin
See LAUREN RHODES MARTIN, page 10
THE ZWEIG LETTER SEPTEMBER 26, 2022, ISSUE 1458
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