By Johan van der Wath (Senior Associate)
You have just accepted consultancy work in Africa and are excited to start. Everything runs smoothly for the first 6 months and then something terrible happens, you realise that you haven’t received payment from the client for the past 2 months.
This situation can have a detrimental impact on your project and your business when you realise that you cannot work any longer unless you receive payment from the client. You desperately require help and decide to consult with your attorney who advises you that you cannot claim payment from the client at this stage. Your attorney further advises you that the contract concluded is glaringly one-sided in favour of the client and that in terms of the conditions of the contract you signed, payment will only be due to you at the end of the project, and accordingly, you are obliged to continue with the works until then.
Luckily, you didn’t fall into this trap as you concluded an agreement that protects your rights as a consultant. You consulted with an infrastructure project attorney, before you signed your consultancy agreement and made sure that your agreement included the following terms:
- The consultant shall be paid within 30 days of presentation of an invoice;
- If payment is not made within 30 days after the presentation of an invoice, the consultant may suspend the works by providing 5 days written notice of his intention to suspend the agreement to the client.
- If payment is not made within 30 days after the presentation of an invoice, the consultant may terminate the agreement by providing 5 days written notice of his intention to terminate the agreement to the client.
Conclusion
Therefore, in order to avoid this unfavourable situation, it’s up to you, as the consultant to ensure that the agreement that you conclude with the client contains the necessary provisions which protect your rights as a consultant.
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