Forum Moderators: LifeinAsia
Just wondering if you guys have new clients pay a deposit before you commence work or do you just go on trust? If yes, in general how do clients feel about paying the deposit for work they haven`t seen?
Also what sort of deposit do you ask for? 20%? 30%?
Thanks,
dc
There is no "one" answer. Some jurisdictions have very precise requirements and meanings; others do not, relying more on a body of common law and "common" sense. Each of us has to find what we are comfortable with that works.
My personal preference is to meld the proposal and the contract legal boilerplate into one document. I use "normal" language except when the precision of legal meaning is required i.e. "liquidated damages" and I include a glossary appendix. I write it (and where possible deliver it) as a presentation. I find that the project details "soften" and by context explain the legalese.
Example:
This is who I am and this is who you are.
This who has what authority for me and for you.
This is what I will do for you by when (summary).
This is what it will cost you (summary and total).
This is the deposit required immediately upon signing.
To meet Milestone 1:
This is what you will supply: in what quality and quantity and by when.
This is what I will supply and what I will do with what you and I have supplied: in what quality and quantity and by when.
This is what I explicitly will not do (or conversely: I will do nothing that is not explicitly stated).
Repeat for Milestone 1+n.
This is how I will submit each Milestone for approval.
This is how you will sign acceptance of each Milestone.
This is how and when I will bill you for each Milestone.
This is how and when you will pay each billing.
This is how non-performance will be costed and handled.
This is how change will be accommodated.
This is where and how disputes will be addressed.
This is who is responsible for what dispute costs.
It takes time and thought to work out a template contract. I actually have several: database design, website design, website seo, website maintenance, etc. that can be modified and combined as project requirements dictate. Once templates are on file it is easy to customise the legalese and plug in actual work details. I then take all documents, messages, notes, etc. to a meeting with my law-type-person who double checks my result - a double check that is much faster and much less expensive than an original contract from scratch for each project.
Up front time and cost for long term savings.
Build it on YOUR server, not theirs either, just put a sample on theirs just to prove (make sure) your stuff will run, esp. if it's CGI, PHP, etc.
Once they sign off on the project and pay the balance move it to their server.
That's all folks.
I would have no intention of releasing any files until final payment has been paid in full. This I have stipulated in the small print. I design everything on my own servers too.
Same here except I clearly lay out in the estimate/quote what that will cover and any additional work they request will be added to the final bill.
Which raises another thought: I've got a particular kit that included a standard contract/agreement. Had it for quite a while, never used it. I pulled it out and reviewed it but it seems like overkill, pages and pages and pages long, and that on top of the proposal. How did you get something that covers it all for your needs, but doesn't scare the client to death? Do you do a proposal, and use a separate contract or is it a combined document?
There are actually three "agreements" that you and the client must reach. Once all of them have been discussed and agreed upon, I write up a single contract/proposal that documents everything.
For me, the sales process is a series of verbal agreements. As long as were are agreeing/negotiating, the sales process continues to move forward. If something arises that cannot be overcome, then that's a showstopper.
I find the process works best when I've covered every aspect that must be covered. You can waste time writing a proposal only to find that the client has taken issue with a legality (even a small one) that you didn't discuss beforehand, forcing you to renegotiate and/or submit another proposal. I recently found myself in this position because I failed to do this with a prospect. He had a problem with several points, some of which he had interpreted to mean the exact opposite of what they actually said.
Here are the three agreements:
Conceptual: You agree "in concept" that you will do business together, conditional on being able to meet all of the client's requirements (i.e,. price, technical requirements, etc.)
Technical: You iron out and agree on the technical requirements.
Contractual: This is where you must agree on things like deposit/payment, boilerplate agreements, and other legal issues such as who owns the site when it's finished.
As I said, after all of these issues have been agreed upon, I write up a single document for the the prospect to sign. Unless I royally screw up it up, there's no reason he shouldn't do so.
