Partner 1/2 what do you do when clients don't pay bills? Even after the usual things- escalation with lead procurement and client contact etc?

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If 120d on 90d terms then revised invoice with additional capital charges normally gets it done, with an alert to procurement lead after 110d that this is going to happen. Normally works, most of the time this is just overworked procurement.

Only ever had one situation that got close to legal action - did a "summary of work" letter at 200d and then a "notice before action" at 230d which recapped the summary of work, noted that the quality of work had not been disputed and was therefore deemed acceptable, presented the final invoice (including capital charges), laid out the terms for arbitration (including our position that this was entirely at client cost), and if payment wasn't made before 250d we'd instruct counsel. Payment was made (including capital charges to the day of remittance), along with an apology from the CFO (someone in procurement hadn't set up the charge structure correctly, had sat on it, and then left the client).... still do good work there.

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As an owner - I made my call here. Sure, my colleagues would hold me accountable. I made the right call... rich seam of work.... and showing understand builds a better relationship based upon Trust and Respect. Sometimes the slow dollar is the more valuable one.

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Oh - and look at the entire timeline. You don't just drop a legal notice onto someone's desk and expect them to react well.

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Thank goodness I'm not at BA ;). Communication is key. As soon as things start smelling a little - talk to your leadership. Make the decision together. As it was, we slipped over year end at around 120d - so managing it the way we did was just fine.

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Thank you- very helpful!

@p1 -- 250 days!? Were you ever concerned that your firm would hold you accountable for the loss and send you packing? I'm just an associate, but I think that's how Booz Allen would handle it.

I can tell you took a disciplined approach, but after 250 days it's likely your practice's revenue vs projections suffered at year end. I'm not privy to those discussions at Booz Allen, but the way i see principals disappear after a bad year, I am guessing this would be a serious issue. My comments reflect my perspective on booz Allen -- we can be pennywise and pound foolish.

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