No signed Purchase Order for 2024 from a client for which I do subcontracting work yet – 1099 here

Anonymous

December 9,2023 at 10:44PM UTC

Welcome to Fairygodboss!

We’re the largest online career community helping women achieve their career goals. Gain access to articles, jobs, events, and a supportive network of women and allies. Membership is free, always.

No signed Purchase Order for 2024 from a client for which I do subcontracting work yet – 1099 here

I posted before on this Forum " No ticky – no shirty" –I had an issue where the Purchase Order for a large client in 2023 for the firm for which I provide consulting services was delayed - which meant the firm could not submit an invoice to the client for me to get paid (Purchase Order # has to be included on the invoice) . 4 month delay in getting paid for consulting performed for which we did not have the PO.The PO is for the entire year and we chip away at it as we do consulting work.

To cover myself for 2024, I prepared a letter stating that I will provide consulting services to xxx for which a purchase order is required for xxx when a signed Purchase Order is received. The owner of the firm signed the letter (I think to placate me ). And in recent conversations I have stated, I cannot provide free work. I also suggested if she doesn’t get a signed PO, that her company pays me for the work performed.Here is where we are at: One hand doesn’t know what the other is doing at this large client. Owner asked them about the signed PO is…. as of 12/9/2023, she does not have a signed PO.. the PO is in “the works”

Here’s the question: We are down to the wire here. I know we will get the signed PO.., the client knows our value. but when, who knows? .with the Holidays upon us. . If she doesn’t get a signed PO by Jan 1 2024, do you think I should state AGAIN, I cannot provide consulting work without a signed PO and suggest that her company pay me UNTIL she gets the signed PO. I do not want to be in the same financial situation as last year.

PS. One thing I didn’t mention to this group is 5 years ago… she transitioned me from W2 to 1099 (benefit for her company). She knows how valuable I am.. Funny thing is the universe was supporting me last week when I presented a report to this client and they responded “ Thank you, you are awesome”. Timing is everything, right?

Thank you as always for your input.

Why women love us:

Daily articles on career topics
Jobs at companies dedicated to hiring more women
Advice and support from an authentic community
Events that help you level up in your career
Free membership, always

12 comments

Share your insight

Join an authentic community that helps women support each other at work. Share your professional experience or ask for advice — you can even post anonymously.

12 Comments

Join the conversation

Sidney BristowDecember 9,2023 at 11:53PM UTC
The nonprofit I work for is in a similar situation, having performed work on the contract but not being paid timely due to the client's internal process failings. Their processes changed when someone retired and they did not inform us, they didnt pay for months and we had to track down the bottleneck. Why are their process problems our problem?? Because we needed to get paid!!
I truly feel for you. I wonder if you can write in a late fee, or not providing services as of a certain date if unpaid (like no work after the 10th of the month if unpaid for the previous month). Even if we had written in those provisions, I am not sure it would have helped. The client is "big enough to get away with" not paying us. As it happened, at one point they were 4 months in arrears which is tantamount to stealing in my book.
Write a tight contract with as many professional "teeth" as you can muster. You are worthy of your hire.
AnonymousDecember 10,2023 at 2:51PM UTC
Exact situation ! A non profit organization! and as you said they are big enough to get away with not paying us. Agree, their process problems are not mine... it is with the owner of the company! Thank you for your in put!
AnonymousDecember 10,2023 at 1:13PM UTC
Regardless of whatever situation, do not work for free... This is your business and expect to be paid for work completed. Stand your ground. She can pay a retainer at a minimum. Also, this going from w2 to 1099,is a huge red flag. Review the IRS definition of 1099 vs. W2. I think she is taking advantage of the situation.
AnonymousDecember 10,2023 at 2:52PM UTC
Thanks for the sanity check! Appreciate your input
Kelley KempelDecember 10,2023 at 1:56PM UTC
I don’t understand the “her company pay me until she gets a signed PO”? Are you contracted through an agency and directly?
I would say the answer here is to stop work until the PO is in place. I own a small business and provide services for other companies. If there is a delay in contract elements or payment, work stops.
AnonymousDecember 10,2023 at 2:55PM UTC
Appreciate your input as a small business..... the firm for which I provide consulting services is a small business as well....What is your POV if I request that the owner of the small business pay me until the PO is in place? To clarify your question...the firm for which I provide consulting services cannot invoice the client until she has a signed PO.. resulting in a delay of paying my monthly invoices for consulting services.
Kelley KempelDecember 10,2023 at 7:10PM UTC
The firm should still pay you, or the firm should advise the client that work will not commence without the PO. This is the firms problem and they are trying to make it your problem.
AnonymousDecember 10,2023 at 7:53PM UTC
Thank you for you input...She knows how loyal I am.. I have to stand strong here....and if it ends up she will wait for the PO... then I will not provide consulting services.
Cara GardnerDecember 10,2023 at 3:03PM UTC
Agree with the other comments, and sounds like you need to adjust your billing terms. I worked for a company and for all their vendors they would have a default net 60, which some of our small vendors couldn't wait that long for payment. My team would have to connect with AP for adjustments.
Mentioning only because if i read your post correctly, it sounds like you invoice company A who then invoices company B.
And I'm wondering if company B has terms that cause a delay in expediting a PO number.
AnonymousDecember 10,2023 at 7:55PM UTC
Yes that is correct. I invoice company A (the firm for which I am a 1099) and she invoices the client, company B. I do not know if company B has terms that cause a delay in expediting a PO number.
AnonymousDecember 10,2023 at 10:36PM UTC
Contract with 3rd party agency... Thanks for your input.. I need to hear it!
AnitaDecember 11,2023 at 1:37PM UTC
I would bill on the last day of the month the work was performed & date the invoice accordingly.