Dealing with company in receivership, but trading normally.

D

Dinarius

Registered User
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I've been asked to quote for a large job (large, that is, for a sole trader like me) for a company that is in receivership, but is trading normally.

My costs will only be time and diesel - I'm in Dublin, they're in Kerry.

Is it reasonable to ask for some of the fee up front? If so, what percentage would be advisable?

Any other advice on how to act in these situations?

Worst case scenario, I don't get paid and I write it off. But, I've never been in this situation before and I'd like to go in with my eyes open.

Thanks as always.

D.
 
Absolutely agree that you should demand a reasonable portion of your fee up-front. If the company is in receivership you will be dealing with the receiver. This may well be a lucrative project for you, so you may be prepared to take some element of risk in order to get the job. However, the minimum amount you should request up-front is your projected outlay.
 
Maybe you could agree a reasonable fee upfront and milestones upon which you will receive further payment. Finally a lump sum.
 
Dinarius said:
I've been asked to quote for a large job (large, that is, for a sole trader like me) for a company that is in receivership, but is trading normally.

My costs will only be time and diesel - I'm in Dublin, they're in Kerry.

Is it reasonable to ask for some of the fee up front? If so, what percentage would be advisable?

Any other advice on how to act in these situations?

Worst case scenario, I don't get paid and I write it off. But, I've never been in this situation before and I'd like to go in with my eyes open.

Thanks as always.

D.
Click to expand...

(2) A receiver of the property of a company shall be personally liable on any contract entered into by him in the performance of his functions (whether such contract is entered into by him in the name of such company or in his own name as receiver or otherwise) unless the contract provides that he is not to be personally liable on such contract, and he shall be entitled in respect of that liability to indemnity out of the assets; but nothing in this subsection shall be taken as limiting any right to indemnity which he would have apart from this subsection, or as limiting his liability on contracts entered into without authority or as conferring any right to indemnity in respect of that liability.

As per Company law
 
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