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debaumer
Community Member

Client billed for hours documented on an hourly contract that was canceled

I have a client that offered me work on an hourly basis, which I accepted (and probably shouldn't have - I now know better). I worked and documented 3+ hours, but the contract was then canceled and switched to a fixed price (again, won't do that again. We are both new, and navigating contracts can be tricky).  Now, client is being billed for the 3+ hours.

 

Is there any way to cancel out that billing and just let her pay for the fixed price?

 

Thank you.

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tlbp
Community Member

Once the client has been billed for the hours, I think your only option is to refund. You will want to wait until you actually receive the payment to refund it--so you'll need to let your client know that. 

Things start to get complicated when you create different contracts, etc. I'm not sure you and the client came up with the ideal solution. So, now you'll just have to make the best of the situation. ( I imagine others will chime in with other, hopefully better, strategies) 

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4 REPLIES 4
tlbp
Community Member

Once the client has been billed for the hours, I think your only option is to refund. You will want to wait until you actually receive the payment to refund it--so you'll need to let your client know that. 

Things start to get complicated when you create different contracts, etc. I'm not sure you and the client came up with the ideal solution. So, now you'll just have to make the best of the situation. ( I imagine others will chime in with other, hopefully better, strategies) 

debaumer
Community Member

Yeah, I get that.

 

Thank you for your reply!

wescowley
Community Member

If you refund the money for the hourly contract, you'll wind up with a no-pay contract, which will impact your JSS when it's finally calculated for you. Rather than doing that, it would be better for you if you can split the cost across both contracts. If the hourly billing is less than the total fixed price, just deduct the hourly billing total from the fixed price when you submit the milestone. It'll be more complicated if the hourly billing is more than the fixed price amount, but the idea is the same. You want some money on both contracts.

 

In the future, it may have been better to stick with the hourly contract and just say "I'm not going to bill more than this amount" and then stop the clock when you get to that total. I use that model a lot. 

Thanks. I haven't had enough experience here to know I could do that...I very much appreciate the info!

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