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Save Your Butt, Use a Contract!

January 14th, 2008   |   Posted in Business.

DISCLAIMER: I am not an attorney. This is not professional legal advice, please consult your attorney accordingly.

Writing

Here are two scenarios:

  1. You do hours of hard work for a client and they don’t pay you!
  2. You are threatened to be sued by a client.

Now these don’t sound very fun do they?

The sad reality of this not-so-perfect world is that they could and probably will happen to you. To best protect yourself, have every client sign a contract. Your contract should state terms of payment, copyright, legal implications and scope of work.

That Jerk Didn’t Pay…

Do you think it’s easier to take a client to collections when you only had an oral agreement or a signed document stating payment terms? Explain when you will get paid by the client in the contract. Get the money you deserve.

Getting Sued…

“Who pertained ownership of the completed works after it was complete?”

“I did not authorize that this work be done. ”

Clearly state the scope of work in the contract. Explain additional fees and payments that will be required by the client.

Use it to sell yourself!

I’ve used the above examples as ways to limit your liability. But most web designers do not realize that a contract can be a really good sales tool. But I know when I first shoved a two page contract in front of a potential client, the thought of this overwhelming and not very fun legal document made me feel like I just gave them a reason to walk away. To my amazement, I got the project. Having the client sign on the bottom line is a nice way to remind you that they have hired you, they agree to everything outlined in the agreement and that they have made up their minds.

Now I don’t hesitate to bring out the contract. I go over and summarize each section with the client. This builds trust.

How do I get a contract?

If you have the money, seek out an attorney to draw one up for you. This is probably the safest way to protect yourself.

If you don’t have the cash, you can do a search for web design contracts in Google and see what others are doing for contract agreements. Do not directly copy their contract. Use them to make your own.

How’s your contract?

Please post a comment below and explain how you are using your contracts. Also if you have any tips to add, feel free to add ‘em.

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  5. Firm Pitfall: Hourly Billing



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