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The Importance of a Good Contract

5/27/2011

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You're always seeing how Joe Freelancer got screwed because of a bad (or worse, no) contractual agreement with Jeff Client. This happens all the blessed time. I have read several great posts lately about how some firms are approaching the idea of contracts with their clients, and that came about at a fortuitous time because I've currently got two contracts outstanding.
Deliverables and escape clauses seem to be the most common client concerns I encounter. Every firm is different, both in scope of work and firm-client relationship management, but these two concepts seem to be the crux of just about all I read on the subject of contracts. Funny, I would have thought money would have been a pivotal concern, but it really doesn't seem to be that big of a hang up. I think that's largely because we are steadily moving toward a more freelance-centered project environment. Most firms realize they are actually saving money by bringing in a freelance professional because (1) the person would likely cost too much to justify hiring for a full-time position, (2) one person can be tasked with the work it would take a team to do in the office, and (3) management can focus on other projects.

So why are deliverables and escape clauses such a big factor? In my situation, I have one potential client who doesn't really know what he needs. He thinks he does, but he really has no earthly idea. Because of that, it is difficult getting him to lock in a set of deliverables. The other potential client just doesn't understand software maintenance provisions. If I maintain your software, you pay me - pretty simple concept. His concern is being able to cancel his maintenance term at any time. I have no problem with cancellation of maintenance provided I have some notice and some control over the transition away from my services.

Ultimately, I believe (and I think this is a common opinion) the contract negotiation process is the absolute worst part of any freelance project. The work is cake, but nailing down the contract can be a nightmare. Luckily, there are a ton of great contract writing resources out there. I will continue to make use of them going forward. If only there were a way to get the client to sign a blank page that could later add the contract on to.... Interesting thought. I must pursue this...

Peace and goodwill to all!
-ELC
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