Finding your way through the hills and valleys of commercial relationships

Danika*, a landscaper, had an agreed scope of work on a property outside of Sydney, with time and materials to be paid for progressively.

She loved the location, got on well with the family that owned it, and it was a big job that was going to keep her busy for months.

Even better, the family gave her work on another property they owned and referred her to another new client.

But with $16,000 owing at the end of job, and excuses piling up about when she could expect a final payment, she started thinking about mediation.

During mediation the property owners were able to raise an issue with a second job that Danika had started working on for them. She admitted that she had made
a mistake that had cost them $2000 to repair. But the family also had the opportunity to reassure Danika that they valued her creativity and expertise.

The mediator facilitated a discussion around a verbal agreement to a $3000 discount if Danika was able to land a big job with a new client they had introduced – which Danika was able to do.

The mediation process also helped them the family to be able to sensitively discuss some cash flow issues in their own business, making a lump sum paymentdifficult for them.

The mediator was able to help the parties manage all of those important conversations, and assist both parties to weigh up her options. Danika agreed that it wasbetter to discount her final bill and accept instalments over time.

When a good relationship turns bad over money, it can be very difficult for both parties to communicate effectively. A mediator will help to address the emotion and focus on what is important in getting the best possible commercial outcome for everybody.

* All names have been changed.