[james g]

Hi all, i need good answers on this, i have been cleaning a contract for 5 years the contract was a 3 year term at the end of the 3rd year we was told the contract would be re tendered we did not know it would take them 2 years to do but it did despite us asking over and over again when would the re-tender take place we never got a 100% answer it was always soon, they told us verbally they would extend our contract for 3 months then at the end of 3 months we was told again, the tender docs got sent out in january i got ours in mid February with a sorry i had two weeks to get them done and back before the closing date, i did, they say they never received them, i re-did and hand delivered, i was then told i had made a mistake with my prices because i was 50% more than others? all i did was increase the hours due to footfall increasing by 200% i did not increase the price by 200%? i then had a text message saying we are in talks with another company because i was late with the tender, we had a argument and i told them we are pulling out as of that day, they persuaded me to come in and have a meeting the following week which i did and went through my prices with the estate manager i came up with another price which was lower but just about covering my costs, today i have had a call to say they are terminating the contract as of the end of august (what contract). thats the story, now what i need to know can i legally walk in and give them the keys back today, i have been led up the garden path for the last two years, it was a very big contract 50+ hours per week.
thanks in advance PS i have not signed a new contract at all it has just been said every three months.

[clarkson]

Hi
No lawyer but if iam reading your explanation you have been out of contract for two years so,you aren't walking away from anything. If you are sure you haven't signed or even received an extension in any formal way can't see they can do or say anything?

Only thing is I bet you have outstanding monies with them either by old invoices or work carried out in current period not yet charged. I could see them playing hardball over these payments either by paying very slow ,or trying to hold some back as they may say,you have let them down.  I would make sure you have your current duties signed for as being carried out satisfactorily and get your invoice in before you hand notice in.

Cheers

John

[Robert Parry]

Hi James,
Clarkson is right, up to a point!

The client may very well play difficult when it comes to paying you for services already received!

A bigger problem is the staff on site already, TUPE would surely apply in this case!

My advice is to comply with the legislation in full and hand over the contract in August, I know it must stick in your throat, but dealing with this situation this way means that you cover yourself legally, and the responsibility for your existing staff gets passed to the incoming company, and of course you end up showing your staff and your soon to be ex client, that you have dealt with the situation in a professional manner.

In the current climate, it is all to easy for our clients to try to save money on their cleaning needs, there is very little loyalty or thanks available to us, chalk it up to experience and move on, and ensure that your new contracts are correctly drafted to overcome problems like this in the future.

Best of luck!

Regards,

Rob

[cml]

Hello James just thought I'd comment albeit you may have made a decision already.

You say your contract was for 3 years albeit you have now completed 5.  It all comes down to the terms of your contract in regards to termination. 
i.e. was there a notice period?  Is the contract period a fixed term and if no notice given continues for another 3 year fixed term etc.,  I would suggest you look to the print to get clarity on this.

It's not clear how you completed your additional 2 years.  Was this by 3 monthly extensions from the end of three years or just over the last 6 months.  The fact that they have given your approx. 2mths notice on a 3 monthly contract may also need to be examined.  I.e a 3 month notice maybe required.   The fact that you do not have a written contract for the 3 months period is neither here nor there.  The two parties entered into a verbal contract with 3 monthly extensions.  The questions is whether this was at the end of your fixed 3 year period or a new 3 monthly contract which they may argue is the case.  ( Examine your termination clause of your original contract).

In regards to your late submission or 2nd submission of your tender leaves you at their mercy.  For furture reference always get a receipt.  Generally some companies give you an acknowledgement of receipt.  If posting send it by registered post or if handed in and no receipt offered get them to sign one on your letter head with details, date, name etc.,

You may ask whether they are terminating your 3 monthly contract without property notice.  If so their notice could be argued as void and would need proper service ( please examine original contract for notices and terminations).  If correctly served then in agreement with other advice given for professional reasons it might be best to serve the term until August and move on. 

If for any reasons they have breached any terms of their original agreement and or extension you may want to finish the contract early and sue for the termination period or fixed period dependant on contract terms.

I hope this helps.   

Final note.  Should all be in order and they wish to pursue with the incoming company please make sure your deal with the TUPE issue if it applies.

Good Luck