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Requiring a replacement of the material of a project by a client after written approval

We are a startup. We had been awarded a project of x value from a client.

The client specified the material to be used for a project and to provide a competitive quote, which we did after contacting the supplier. We got the deal done for a really good price and bagged the project.

After the LPO award, we started with the execution and did a mockup (completed 15% of work). After taking the client’s approval again in writing, we went ahead & placed the order.

It’s been 3 months and still, the client hasn’t made any payments, now they are saying that the material is wrong. They want a replacement.

The supplier has shipped the material to the warehouse in UAE since 3 months and we have paid 40% to the supplier. The supplier has paid 100% to the manufacturer, we have issued the supplier an LPO.

Now, the supplier has warned us about taking legal action against us.

The client we are dealing with is a big client, how can we take this further?

Can we claim the legal fees in court?

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Al Fahad Legal Consulting
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18 Jan 2021, 09:57

Dear Questioner,

Further to your inquiry, please be informed that there is no legal liability on you with the client due to the fact that you already sent him an LPO, he accepted that and you started the work with the project 3 months ago with no complaint from the client.

Moreover, you made the deal with the supplier and he has already provided you with the required materials. So I do not know why he warned you to take legal action against you? Please elaborate!

Based on our history, with full of respect, the client is playing with you and he doesn’t like to pay the money for you; that's why he started to underestimate your efforts and changed thoughts about the real materials.

Absolutely we can assist you to get and recover the legal court fees, please do not hesitate to contact us via email and provide us with related documents to review it and provide you with relevant legal advice.

Looking forward to hearing from you.

Thanks!

18 Jan 2021, 15:38

Dear Mohammad,

The client has given us the LPO to execute the project using a specific material, which we ordered from the authorized supplier (and we gave the supplier an LPO from our end) to deliver the materials to the UAE so that we can carry on with the execution.

The cost of the material contributes to the majority of the project value and now after the shipment delivery to UAE, the client seems to be inclined to change the material which has put us under stress as we have paid a partial amount to the supplier and the supplier has paid the manufacturer.

19 Jan 2021, 10:41

Thanks for your comment as I already understood the whole story.

It is apparent that the client accepted and approved the type of materials initiated and he has no right to change it as well.

The only solution is to continue the project and finalize it. Then, you can claim your money from the client in court if he refused to pay.

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Al Safar & Partners Advocates & Legal Consultants
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25 Jan 2021, 05:27

Dear Client,

Good day!

We need to know what exactly you require.

Do you require to stop and change the materials? Or Do you want us to defend your action against the supplier?

Do you want us to file a case against the present company that the client has voided your contract in return for approvals for the startup, do you want us to do that?

Please let us know what exactly is your business interests so we can advise the legal options or course of action thereof.

For further assistance, please feel free to contact us via phone or email.

Thank you!

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