Asking advice how to deal with business dispute

Dr. Green · 12-15-2010, 10:11 AM

I have a business dispute with a prominent Winnipeasaukee.com advertiser. I should start by saying I'm reluctant to take legal action, so in your replies, please don't rush to suggesting "sue them", though it may come to pass if nothing else works.

I entered into a contract with a company to develop a project, and at the first meeting announced my budget for the cost of the project (different than the cost to be paid to the company to develop the project).

We worked on the project for several months (and the budget was repeated several times). Finally it was time to put the project out to bid, and the bid came in for twice the budget! I was shocked. I went to the lead developer and asked him how much he had anticipated the project costing, and he said roughly 2.5 times budget and he thought the bid was low. I asked why he didn't tell me this and he said he hoped the bidder (who he knew was a friend of mine) would cut me a sweet deal. In fact, the bidder did cut me a sweet deal (I asked) but that sweet deal was still 2 times the budget.

I paid my bills to the developer (I'm that type of person, honoring my commitments) and thought about it and requested a refund of half what I spent with the company (roughly $10k of ~$20k spent). I have received no reply (the request went in my very last payment, so I know they got it).

I was pretty devastated by this, and it took me several months to move ahead on a scaled down project (working with someone who knows my concerns about budget and is working closely with me on that).

I have learned of another person who had the same experience with the first company (project was way over budget and abandoned). This was communicated my a mutual friend (I don't know the other person personally) and thus is hearsay, but i find myself getting steamed up again, upset that there was absolutely no reply to my raising the issue of the company ignoring my budget in their development, and hearing they do this repeatedly (well, at least one other time).

I'm looking for responses that might have positive suggestion where to go with this. Rather than just try to destroy the company's reputation (tempting, but not my first choice), I'm looking for advise how to constructively engage the firm about this issue. I realize they have already indicated they don't want to engage in any discussion, but is other anything else you can think of that would be (or has the potential to be) positive and constructive, other that lawsuit or defaming them? (Is it defaming if my accusations are true?)

12-15-2010, 10:11 AM	#1
Dr. Green Member Join Date: Mar 2009 Posts: 38 Thanks: 0 Thanked 3 Times in 3 Posts	Asking advice how to deal with business dispute I have a business dispute with a prominent Winnipeasaukee.com advertiser. I should start by saying I'm reluctant to take legal action, so in your replies, please don't rush to suggesting "sue them", though it may come to pass if nothing else works. I entered into a contract with a company to develop a project, and at the first meeting announced my budget for the cost of the project (different than the cost to be paid to the company to develop the project). We worked on the project for several months (and the budget was repeated several times). Finally it was time to put the project out to bid, and the bid came in for twice the budget! I was shocked. I went to the lead developer and asked him how much he had anticipated the project costing, and he said roughly 2.5 times budget and he thought the bid was low. I asked why he didn't tell me this and he said he hoped the bidder (who he knew was a friend of mine) would cut me a sweet deal. In fact, the bidder did cut me a sweet deal (I asked) but that sweet deal was still 2 times the budget. I paid my bills to the developer (I'm that type of person, honoring my commitments) and thought about it and requested a refund of half what I spent with the company (roughly $10k of ~$20k spent). I have received no reply (the request went in my very last payment, so I know they got it). I was pretty devastated by this, and it took me several months to move ahead on a scaled down project (working with someone who knows my concerns about budget and is working closely with me on that). I have learned of another person who had the same experience with the first company (project was way over budget and abandoned). This was communicated my a mutual friend (I don't know the other person personally) and thus is hearsay, but i find myself getting steamed up again, upset that there was absolutely no reply to my raising the issue of the company ignoring my budget in their development, and hearing they do this repeatedly (well, at least one other time). I'm looking for responses that might have positive suggestion where to go with this. Rather than just try to destroy the company's reputation (tempting, but not my first choice), I'm looking for advise how to constructively engage the firm about this issue. I realize they have already indicated they don't want to engage in any discussion, but is other anything else you can think of that would be (or has the potential to be) positive and constructive, other that lawsuit or defaming them? (Is it defaming if my accusations are true?)