Forum Moderators: LifeinAsia
So I meet with a potential client. I give them the cost for the project. They say they can't afford it as of now, but would get back with me. Mind you: at the start of the meeting, they said they had been burnt by their previous developer. They later contact me. At this time, I'm running a sale: 30% off websites. They're in luck because of the huge discount. They accept the new cost. I present a contract.
I tell them that I require payment in two halves. 1/2 at start, 1/2 at finish. The project is $1400. They say, "can we do it in 3rds?" I say, "fine". In the contract, I mention the payment terms, specifying when the middle payment is to be made, which is after finalization of the design concept (just to be clear).
I sent the contract to them in a new email, with the subject line "Contract", its an email contract with these instructions at the end of the terms:
/////////////// INSTRUCTIONS /////////////////////////////
If Client agrees with the above (contract), please do the following:
1) Reply to this email.
2) Do not edit the “original message” that is posted in the email.
3) Reply with this message:
“I, CLIENT NAME understand and agree with the Customer Service Agreement below.”
//////////////////////////////////////////////////////////
They respond to the contract with a few more questions about the terms. I clarify in response to their email and they say they understand. They then reply to the same email with this response:
//////////////////////////////////////////////////////////
On behalf of Mr.X and myself, please accept this e-mail as our concurrence with the contract and responses you provided below. With this, we are ready to begin the project. You will be receiving the deposit via paypal shortly. Please note it will come across as two separate transactions that will total the full $X-amount due. I am about to leave for the airport shortly, but will get the initial content and information requested to you soon. Thank you.
//////////////////////////////////////////////////////////
After this I receive two separate emails from two separate email accounts for the first down payment. The problem is, they didn't respond to the contract according to the instructions specified in the email. My question to you is:
1) Did they simply miss that instruction listed at the end of the contract?
2) By stating they agree, instead of actually following instructions, do they create a loophole that can later be exploited? Like saying, "we never agreed to your contract".
3) They paid from 2 different Paypal accounts. Is this a money issue? Probably? Your thoughts anyway.
4) Or, am I being crazy or too strict about this? I simply want the client to respond according my instructions. Any other way seems as if they don't want to be legally bound if something was to go wrong? I also understand that they may be cautions because of their previous experience with a past developer.
Give me some feedback. It just seems weird. If I'm the weird one, let me know - you won't hurt my feelings. My clients in the past have cooperated with my email contract without a problem. I find it quite easy - you don't have to do all the faxing, signing and all that - just simply reply. I plan on calling them about this. But I need your take on the above situation.
[edited by: Nealreal at 12:48 am (utc) on Aug. 2, 2007]
I wouldn't worry about it too much. You've already protected yourself by phasing the project and payments. The most you are out is 1/3 of the agreed price. Make sure you are strict about it - don't start another phase until you've received the required payment.
The best advice I can give is "know your customer". At least have a phone conversation, which can give you so much more information than an exchange of emails.
Dealing with "Mom and Pops" has it's advantages and disadvantages. On the plus side, you often get quicker payment and truly fair terms - small businesses often agonize over "doing the right thing". When the business is small, it gets personal. At the same time, their resources are limited, and you can't get blood from a stone. And they will insist that you comply with both the spirit and letter of your agreement.
Many years ago (before Al Gore invented the Internet) I had a small computer consulting company. We ourselves were a "mom and pop" and we dealt with companies from mom & pops to large corporations and government agencies. We called one of our favorite clients "The Snoop Sisters". Two elderly sisters running a resale shop. You couldn't get much past those two wise old birds...
