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What is the charge and process for my scenario?

Hello I am looking to send out a prelim notice. Looking to charge a back charge. The company I want to send the notice to is expecting pay for material which I will be paying but their material arrived late for 3 days and I want to charge for all the money I had to waste for their late time.

1 reply

Jul 7, 2020

Preliminary notice is not what you need. What you are describing is a delay or disruption type claim. Under general contract principals you would be entitled to a back charge for to extra costs incurred, provided that time was of the essence under the contract. Many contracts contain specific resolution procedures (and at times claim forms) for disputes over delay or disruption, so check this first. If the contract is silent (or if it is just a purchase order), and it is clear that time was of the essence, then simply put together a letter which clear itemizes your additional costs and asserts that the supplier will be back charged. The better your documentation is supporting the additional charges, and the clearer the contract or purchase order is with respect to the time commitment, the stronger your position will be. Of course you must consider your business relationship with the supplier as well, if your business with them is ongoing. If you require legal assistance feel free to email me to schedule a free consultation at ryan@huntormtann.com.

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