You’ve just had a phone call from a client.
Let’s say…they aren’t happy with the work you’ve done. Or maybe it was the amount you invoiced them.
You can feel your heart racing. Your anger rising.
How do you handle these situations?
We all hope it never happens to us, but it’s important to be prepared for situations like this.
Before a dispute happens
Before we try to navigate through a dispute, let’s quickly go over how to avoid client disputes in the first place.
My 4 rules for this are:
- Before you commence any work, sign a contract
- If the client requests any changes after the work has started, get the request in writing (and signed!)
- Practice clear communication to make sure everyone is on the same page
- Keep detailed records of everything related to the job. This includes:
- Any communication to/from the client
- Hours logged by you and your team
- Any expenses incurred on the job
- Updated timelines and estimates
But the unfortunate truth is: client disputes happen. No matter how much precaution you take, you will experience client disputes from time to time.
So let’s talk through what to do once they come up.
Resolving a dispute
As your first port of call, try to find some middle ground between you and your client before getting anyone else involved. If you can reach an agreement with your client without involving anyone else, it shows goodwill, saves cost, and sometimes even allows you to salvage the relationship.
1. Try to get the full picture of the problem
Look at your records of the job and hear your client out. If you didn’t do the job, talk to members of your team who did. Find out what - if anything - went wrong, and why.
If you or your team messed up, obviously next steps are to apologise, fix the problem, and mend the relationship you have with your client. Offering to give a discount on the billed hours is usually a good way to calm a situation.
If you didn’t mess up, but the client is disputing your work because of an error in communication (i.e. the client requested changes after the work started, but you didn’t get it in writing and they’ve now backtracked on the changes they proposed), then the situation becomes a bit more tricky. Unless you’ve got something to prove you’re right, you’ve unfortunately drawn the short straw and you’ll likely have to compromise to keep the client happy and avoid future reputation damage.
Note - if an emergency fix is needed, just get it done. Health and safety are more important than money, especially when someone’s kitchen is flooding. Having your priorities straight also shows your professionalism and level of care.
2. Try to find a middle ground
It’s human nature to want to be right, but that’s not how you resolve disputes. Let the perceived reputation risk be your north star to guide you through the process.
Ask yourself, if you keep pushing your point, will you risk hurting your long-term business reputation? If yes, is it worth it?
In most cases, the answer will be no.
Compromise is everything, in professional (and personal) relationships. There’s no point in proving yourself right when your future income is on the line.
3. Refer to the complaints process
If you can’t find a middle ground with your client, you can refer them to the official complaints process. You’ll either have a specific process outlined in your individual contract with the client or if you’re part of a trade association, they’ll have a detailed complaints process. Read through it and refer your client to it.
Having a process in place takes the guessing work out of disputes that can’t be solved one-on-one with the client.
4. If all fails - take legal action
Legal action should never be taken lightly - it’s always the last resort. But sometimes it can’t be avoided.
If you have a lawyer or friendly legal resource, now is the time to consult with them. Otherwise, the Citizens Advice Bureau is a great place to start when trying to understand your rights and best way forward.
Your state’s Civil & Administrative Tribunal also has a wealth of information, as well as advice on where to find legal help and advice for your situation.
Worst case scenario is you end up in court, but there are a few legal avenues to explore before that happens. My advice is to consult a legal expert from your local or state jurisdiction before committing to a course of action.
Wrapping it up
Client disputes can cast a shadow on your job satisfaction. Hopefully, the tips above will help you navigate the relationship with your client in a more streamlined, less stressful way.
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