A close friend of mine is VP of a light manufacturing company and asked me to come in and look at a software requirement they had - basically a networked UI and reporting system for some custom firmware they had been developing.
As i understood it he had cleared with the CEO that i would go in and produce a spec and estimates for them to take to their board of directors for budget approval (but that was a no brainer because customers were clamouring for it). So i went in, had a meeting with the engineer who developed the firmware, told them my rates and that i would itemise the requirements, and come up with a system concept with recommendations and estimates.
I delivered a 15 page document a few days later and went in for another meeting to present the ideas etc. A week later my pal mentioned the document had been useful in a presentation he had given to a major client who was anxious for this software. They took it to the board who deferred a decision pending better financial statements from the CEO.
At the end of the month i invoiced for my time so far (2 days) and sent it to my pal the VP.

The board eventually approved the project but it was to go out for a competitive bid. They also said they needed the s/w but were worried about their cashflow so could i give them 60 day terms. I declined but said i could cap my monthly billings and spread the invoices out for them. Soon after i was told that i couldn't invoice them for preparing a proposal bidding for the contract.

Oh well i thought, that will teach me.. friends and business. I should add that my pal the VP has been pretty much emasculated since the arrival of a new CEO earlier this year.

My pal then sent me the competitive bid for comment. It was a 1½ page document that hadn't really understood the requirements (as i had understood them at least) with estimates to produce a prototype and do further analysis - what you would expect for your first free hour's consultation. I heard no more and soon decided i didn't want the job anyway - they were going to be too much trouble. And started scrambling for other work to fill the gap (offers please).

2 days ago the engineer who wrote the firmware went to my wife's office (she also works there - i know, i know) and said he was dismayed i wasn't being awarded the contract and how sh*tty it was that they used my design to spec the project for the other firm.

So i asked my pal to resubmit the invoice. I got a phone call from the CEO saying they wouldn't be paying as they don't pay for proposals. I pointed out much of the above and that as they had now benefited from my work they should pay me for it. He declined.

I'm ticked. I should've known better i know, but i'm ticked anyway.

What's the concensus? Am i being a male appendage and just chalk it up to experience or, when i my wife finds a new job, take them to small claims court. Candian law has the concept of "unjust enrichment" for cases where a firm can be shown to have benefited from someone's work unjustly.



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