Contractor Dilemmas - Moral and Financial Obligations?

An Anonymous Coward asks: "This is a true story, one that I am currently trying to resolve and wondered if the Slashdot community could offer any help. I've been developing a new application for a startup company, contracted on a daily basis for my services. I've been providing services for 5 weeks now, and am still trying to get payment for work completed during week 1. The company is refusing to pay me, stating that they are not happy with progress, however all of the milestones we agreed upon for that week have been met. Now, it gets interesting: I know that this company is seeking startup venture capital, and I know from whom. Yes, it would be malicious to contact this party with the information that I have, but am I morally obliged to? If you were set to pump several million into a company with loose moral fibre would you not appreciate a warning?"

Comments

You need the VC as well as them.

[WasterDave]

They probably don't have the money. You can be as pissed off as you like about it, but that won't help you get paid. Ditto bitching to the VC's - won't put money in your pocket.

I suggest you have a little chat with them along the following lines:

1, You've not paid me, I'm a bit pissed off.
2, But fundamentally I like you guys, I like working here, what we are doing has value and I hope to have a long and prosperous working relationship.
3, So can we be honest about this - if you've not got the money to pay me right now, just tell me and we'll work something out.
4, But if push comes to shove, until you pay me for it I own the intellectual property on the stuff I'm doing for you. You have to see this as a risk to the bigger picture, and clearly it's a risk that you'll be wanting to alleviate.

Dave