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Fair and ethical Payment vs. Declining service call

By michaelaknight ·
I walked into the office today...through the front door(stupid) and was met by the CEO on the way into my office.
Apparently at one of our resorts, a GSA(guest service agent) had called our Phone Maintenance contractor and requested that something be done about a phone problem. The provider stated that he would be declining the call due to the fact there were outstanding invoices. At the property the GSA said in passing to one of the Board members of the resort that the phones were torqued because we (the management company) didn't pay the bill. needless to say the board member immediately called my CEO and ranted, hence the visit to my office.
I was in no real danger, as I do not handle accounts payable but what surprised me was the CEO's take on the situation...He was ready to simply cancel the contract due to the fact that the provider would 'flippantly' inform a GSA etc. and due to the fact that there was only 2 invoices that were overdue to the tune of $3200 which wasn't paid due to oversight and the wrong impression it was net 30 (not an excuse). I was told to contact the provider and put him in place etc. etc...I didn't and instead emailed stating that as an IT Director I don't handle accounts payable and that I understannd the fact that there are overdue invoices and that it is his perogative to decline service however please in the future do not include GSA's or non managers in this sort of discussion. Also that in the future GSA's and non managers are not to call him directly and that he only work with the GM, assistant GM, and maintenance. I CC'd accounting, the GM on property and CEO.

I owned a business for 5 years before taking a cush office job and ran into this thing all the time from the other side, diregarding terms, late or no payment etc. And have declined service for much less than $3000. I still have probably $4000 out in never paid invoices, which towards the end prompted me to adopt a 50%,40%,10% policy which actually worked well and weeded out the slackers.

My Question is for both independents and those that pay them, how do handle the above and similar situations? And how do you feel about the above?

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