Customer Refuses to Pay Agreed Gross Contract Price....

Hello all.
We have a client who agreed a contract 10 months ago for some home improvements, the contract value was in excess of 35000.00 GDP - the work is now completed. The negociations for the work took a little time as expected and in the proces we gave the client a clear break down of each main facet of work. All our pricing is calculated inclusive of Vat. The quotation we tendered broke the contract price down into its relative facets of work and clearly stated that all the costs were inclusive of Vat .. the contract was agreed. It transpires that there was an error on the contract in as much as the overall net price shown on the contract was calculated incorrectly (the figure was too low)so as a consequence if the Vat is added to the incorrect net figure the gross price is around 1500.00 short of the correct gross figure. The client is now saying, at contracts end, that he will pay only the Vat on the incorrect net figure albeit the contract was agreed on the higher figure. It should be noted that every price that we'd ever given the client was gross. The gross prices initially tendered were higher than the client budget and the contract price was discounted quite aggressively down to the agreed price. What is our position?

Re : Customer Refuses to Pay Agreed Gross Contract Price.

If I have got this right your contarct incoroporates two prices a lower incorrect one and a higher incorrect one?
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Re : Customer Refuses to Pay Agreed Gross Contract Price.

Sounds like a tricky one to me. I think you're in an extremely difficult situation if you're trying to charge extra due to incorrect calculations on your part in the first place. You may have to bite the bullet and accept it - would you pay the extra if you were given a lower price originally? I wouldn't.
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Re : Customer Refuses to Pay Agreed Gross Contract Price.

What does the paper trail show? Would it have been clear to your client that the Contract price was a mistake? Do you think that your client is just trying it on? If your client pays the lower figure WITHOUT your agreement, you could always immediately demand the difference and take him to the Small Claims Court if he didn't pay. It would then be down to the Court to consider the issue of mistake. As an alternative, have you considered asking your client to split the diffrence with you? Not ideal, but at least it would lessen the loss.

Re : Customer Refuses to Pay Agreed Gross Contract Price.

Hi there

Judging from what you have written it appears there is a dispute concerningt he price. IF it can be shown that throughout the negotiations the higher fee had been agreed and that the error was more administrative than otherwise then perhaps this can be challenged but having said that I would be inclined to say the agreement at the lower amount may well be jsutified if the customer believed this is what he was going to pay.

A closer look at all the paperwork maybe required.