Problem: Can a project manager make a claim when a building company refuses to pay?
I am a freelance project manager. Back in February/March 2017, I was asked to project manage a small housing development (5 units) for a builder. Having thought about it, I said I would and subsequently approached the director about a contract of engagement, and although he said he would get something to me, I began working on the project without a written construction contract agreement.
I constantly chased the director about the contract, only to be told each time that the matter would be resolved and the fees approved, but by late May this had not happened, so I resigned.
I have since been chasing up the invoice which is overdue for the service I provided. The company have stated they will pay me, but have tried several times to bargain me down on the cost of the service.
My question is: can I take a building company to court for not paying my project management invoice without a signed contract?
Response: Advice for getting payment without having a written contract
The simple answer to your question is yes! It is possible to take the building company to court without having a written contract for your construction project management service. However, the problem you face is one of evidence.
A written contract is evidence of what the parties to an agreement have agreed, so if there is a dispute over say time or payment, the terms of the contract for the construction work will provide the evidence as to what the parties agreed, or at least the basics of what was agreed.
Where there is no written contract and the parties fall out over payment and the matter goes to court, a court will listen to the oral evidence from each party and will then decide which party it believes is more truthful than the other.
It is therefore always advisable for any party prior to entering into an agreement, to ensure that the agreement is in writing, no matter how small the construction project may be.
© Michael Gerard 2018
The advice provided is intended to be of a general guide only and should not be viewed as providing a definitive legal analysis.