Forum Moderators: phranque
1. If you promise a service in your contract, even if your client says later that they changed their mind, do it in a minor way anyway just to cover that base. Else, have the client sign an addendum to the contract excluding that service.
2. Re-read and modify the non-general terms (e.g., Services that you're rendering) every time you write a new contract. That way you don't end up offering something you didn't plan to, and the contract is customized to a particular job.
3. Be honest. Never try to trick your client.
4. If the contract says they pay BEFORE work begins, then adhere to this religiously. Don't begin work and expect them to pay in the next week. Don't waste your time unless the money is in (unless, of course, it's someone you trust)
Finally: 5. Don't gamble where money is involved. Get as much upfront as you can, and offer as few unmeasurable guarantees as possible. (i.e., DO: guarantee that the website will be done to the agreed upon specs. DO NOT: guarantee that they will "sell a lot" in their first month.) If you have to guarantee anything at all, make sure you specify how much of the money is refundable, and that whatever you deem isn't refundable cannot be refunded for any reason. CYA.
If your contract is written well enough you should be covered if you have to go to court but you don't want to end up in court.
A client that does not have a live site (because you have explicitly stated that you will take it down in the event of non payment) will pay you a lot quicker than it takes to get money off them through the courts.
EXPLICILTY state what will happen in the eventuality that they do not pay.
SO important. The easiest and least expensive method is to take down the work you've done and sell it to someone else (it would be cool to sell it to their competition, but I haven't ever really been in a situation where that is possible). When I'm asking for a monthly fee or stipend, I add a 15% penalty if they're late with the payment and specify this in the contract.
If your contract is written well enough you should be covered if you have to go to court but you don't want to end up in court.
A good thing to include in your contracts is a stipulation called "VENUE AND JURISTICTION" which basically says "Any legal conflicts or disputes must be resolved in the vicinity of the county of Your County and State Here, and overseen by its courts according to its laws." That way if your client want to sue you, they're contractually obligated to resolve the issue in your courts (so if you have a client overseas or in another state, it would create a serious hassle for them to sue you).
Although it is a bit redundant, the section below usually weeds out anybody trying to pull one over on me. I am pretty much a jerk when it comes to my agreements, but I do what I say I will, and I expect the same from clients.
I like this section of my agreement. :-)
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The above detailed project will begin upon receipt by {COMPANY} of an initial deposit in the amount of $X000 (X thousand dollars), and receipt of all Client supplied text and graphical materials. Following completion of initial design and layout, additional payment of $X000 (X thousand dollars) shall become due and payable prior to continuance of work. Upon public launch of site, additional payment of $X000 (X thousand dollars) shall be due and payable and remitted to {COMPANY} within five business days. If payments become over 15 days past due, or agreement is breeched for any other reason, {COMPANY} shall be entitled to recover the full agreement amount of $XX,000 (XX thousand dollars) plus any additional fees owed, interest, late fees, and any other collection costs including court filing fees and attorney fees. Late payment is cause for interruption of service and other collection practices deemed necessary by {COMPANY} including redirection to a custom “Website Unavailable” message hosted at {COMPANY}. Failure by Client for any reason to complete any portion of this agreement does not relieve Client of responsibility of the entire agreement. By signing this agreement and remitting initial deposit of X thousand dollars, Client agrees that if for any reason a portion or portions of the project is cancelled for any reason whatsoever that the remainder of the overall agreement becomes due and payable immediately for a total of $XX,000 (XX thousand dollars).
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I also add an $x,000 suspended discount for adding a text link to us at the bottom of the pages. They must pay us the discount amount 1.) Before changing DNS 2.) Before hiring another firm to work on the site 3.) Upon disproval (at our sole discretion) of site content 4.) If the agreement is breeched (including payments over 15 days past due.
You wouldn't believe how many of my clients jump on it for the immediate discount. Plus, the checks are quite prompt. :-)
This is not a "plug" for our site, but if you go to the site in my profile and add "/unavailable" you may get a chuckle out of the "Website Unavailable" message we use. :-)
My clients love me, appreciate my work, and brag about my successes to their business friends (who then come looking for my services). Part of that is the personable way I conduct business.
:) Y