Complaint Review: Preferred Technology Solutions - Richardson Texas

I was contacted by a representative at Preferred Technology Solutions (Andy Davis - no longer works there likely because of this contract) with drawings to get quotes for a large technology company. After coming up with a design, quotes, etc (which was a very time-consuming process), I was told we were given the order. Andy emailed a spreadsheet which had 172 cases (2 designs adding up to that quantity). I sent them an invoice with the quantities represented. PTS (Preferred Technology Solutions) received that, added their costs and provided that to the end user.

They responded with "[We] are committed to the team", "proceed as if a PO is in place". When I received that from my contractor I asked multiple times to clarify if this was a for sure order. He replied with "100%" and forwarded emails that they wanted to get everything built, they were just in the process of getting a purchase order. The end user also asked, "how do we make sure we are not losing time during the PO creation process?" They were obviously on a deadline. My contractor told me to start and he'd get me 50-60% of a deposit as soon as they received the PO but go ahead and start building.

With that information, I started purchasing inventory, machinery (CNC machines, tooling, programs), materials, etc. I started interviewing and hired workers to complete the project quickly. I got an investor to help with purchasing what was needing until the promised deposit was paid. 

After all that work, purchasing and gearing up, I got an email that they are cutting the order down to 24 cases and that they were not going to give me a deposit. Then demanded they be done in a specific timeframe, though it took about 5 weeks for them to finally generate a purchase order. I was locked into building these. 

During the build process, I was harassed daily by the contractors by calling, texts, voicemails, emails and at one point called a business near us and had the employers daughter run back to our business to try to find me. They then made demands of some of the cases be delivered before the others (where we were set up to build them quickly in bulk) so we made accomodations. Then they made a significant number of changes to one of the main designs and I was told that the original case I built (though they approved the design, they wanted them to be deeper front to back and a few fairly important modifications) and I was not going to be compensated for that "sample case", despite me building it overnight on a weekend to meet their demands. 

I delivered the cases in 3 batches in person (3.5 hour drive one way), since they demanded to have them quickly. One of the designs (rack cases - 16 of 24 of the cases) was delivered and they had no issues with it. When I dropped off the remaining rack cases that were exactly the same, they said their equipment would not fit. I was then forced to have myself and a tech go out for 4 total days to modify the cases to fit their equipment. The original designs called for a 19" wide rack case (we've built hundreds of these and never any fit issues) and the cases were exactly spot on, exactly precision cut as the previous two rack cases they accepted and like the "sample case." 

But they blamed us that the cases were not wide enough and they overnighted different rack rails in 3 separate shipments to "fix" the problem. It was not the rails that was the issue. We took 4 days to meticulously bolt and tension the interior of the cases so that it stretched them internally for their equipment to fit - so past the specifications we were given to build these. 

To date, we were only paid for 6 of the 24 cases. They have not paid for the remainder of the cases that were delivered. They have not paid for my tech and my time for modifying the products to fit their equipment. They have not compensated me for credit card processing fees (they explicitly told me they would pay me for what was delivered and then we would refund the credit card and use certified funds). On the third batch of cases, they did a chargeback for almost $28k out of my account.

We have not been reimbursed for costs for "gearing up" for their original order of 172 cases that they explicity agreed to, saw the invoices and quantities and total amount due and said "proceed as if a PO is in place". I have other costs and damages incurred from their lack of payment and reimbursement. I now have legal fees since I'm having to pursue them with an attorney. They have not made any reasonable attempt to remedy the situation and, in fact, have sued me. 

They claim I did not meet deadlines (humorously, it took 5 weeks to generate a purchase order - they did not give me the promised deposit and they made significant changes to the designs and we had to go onsite on 3 trips through 4 days to modify them to where they fit their non-standard equipment), that they were not in "proper working order", and that they had damages (which they incurred none except their pride and ego). We have a no cancellation policy and if there are returns or cancellations, we assess a minimum of a 25% restocking fee. 

To date, there are also around 600-700 emails, around 100 phone calls and about the same or more text messages - all done during early morning, afternoon, evening, late at night, on weekends and holidays. No project we have ever done has take 1/20 of the amount of time this contract stole from me.

So the cases are with the end user, they signed off in full on them and are pleased, but the contractors have not paid the contracted amount, damages, modification time, the uncompensated original case that was built, travel expenses, bank fees for the chargeback, processing fees, costs and damages incurred and legal fees. The remainder of the contract owed is $27,780.33 (if paid with a method other than credit card, it would be $26,084.82 - but that is likely no longer an option). The damages, restocking fees, and other costs incurred are $64,374.99 to a total due of $92,155.32 plus legal and court fees. Now that they are suing us, the legal fees will be increasing due to extra time involved with either travel, changing venue, countersuing, and my attorney's time. 

Let's hope Preferred Technology Solutions can do the right thing and settle this claim.