4 ms·

This isn't good advice in general - sure, in this situation you happened to have all the leverage because you were developing a core product of the company the

by xenity7 10y ago

This isn't good advice in general - sure, in this situation you happened to have all the leverage because you were developing a core product of the company they needed to own to raise funding, but that's a corner case. It's just as likely the situation be flipped and the client refuses to pay because there's no contract. The contract is there to protect both parties. Starting work without a contract puts you at risk as a consultant - maybe the funds haven't been approved yet and the contract will never be approved, maybe the ultimate approver will disagree with the scope and you'll go down the wrong path with your day to day contact ... Most companies hiring contractors are going to be larger than a handful of people and it's dangerous to assume you understand the internal dynamics as an outsider. Just like a client will check that you can uphold your end of the contract by checking your references and qualifications, it's ok to ask a smaller client like a startup for assurances that they can actually pay.

wvenable 10y ago
I think both you and the author have valid points. If the contract is favorable to you, then you'll probably want to sign it. And pretty much all contracts should be favorable to both parties (if it isn't, then don't sign it until it is). However an NDA isn't favorable to you on it's own. If they forget to make you sign it, then it's a slight net-positive to you. But normally you'll sign an NDA to get their business which is favorable to you and a reasonable exchange. I think as a general sniff test, it's not a bad one. Both parties should be equally responsible and this is one way to perhaps demonstrate a lack of responsibility from the other party. Conversely, if you want someone else to sign your contract, you should follow up to make sure it happens.
- xenity7 10y ago
  I agree with you that often the consultant gets nothing out of the NDA (bar the case where the consultant is sharing a proprietary method). Larger consulting firms actually often include their own form of NDA in engagement letters forbidding the client from sharing work product with third parties without permission. The NDA is typically separate from the actual engagement letter in my experience, and to your point I've actually worked on projects where we signed the engagement letter but "forgot" to sign the NDA and that piece fell through the cracks We scrupulously acted as though we had though to prevent the reputational damage that would come from violating confidentiality - NDA or no NDA.
eponeponepon 10y ago
Yeah, this could never fly for more than 30 minutes with an established corporate client - but I think that's kind of the point. A firm who did let it fly would be a firm covered in red flags. But it cuts both ways - the big software company in the article could very easily have dismissed the contractor team as wannabes, thanked them for their time and sent them on their way, rather than politely reminding them of the paperwork. I guess it's a game of brinksmanship on both sides.

by xenity7 10y ago

wvenable 10y ago

I think both you and the author have valid points. If the contract is favorable to you, then you'll probably want to sign it. And pretty much all contracts should be favorable to both parties (if it isn't, then don't sign it until it is). However an NDA isn't favorable to you on it's own. If they forget to make you sign it, then it's a slight net-positive to you. But normally you'll sign an NDA to get their business which is favorable to you and a reasonable exchange. I think as a general sniff test, it's not a bad one. Both parties should be equally responsible and this is one way to perhaps demonstrate a lack of responsibility from the other party. Conversely, if you want someone else to sign your contract, you should follow up to make sure it happens.

xenity7 10y ago
I agree with you that often the consultant gets nothing out of the NDA (bar the case where the consultant is sharing a proprietary method). Larger consulting firms actually often include their own form of NDA in engagement letters forbidding the client from sharing work product with third parties without permission. The NDA is typically separate from the actual engagement letter in my experience, and to your point I've actually worked on projects where we signed the engagement letter but "forgot" to sign the NDA and that piece fell through the cracks We scrupulously acted as though we had though to prevent the reputational damage that would come from violating confidentiality - NDA or no NDA.

eponeponepon 10y ago

Yeah, this could never fly for more than 30 minutes with an established corporate client - but I think that's kind of the point. A firm who did let it fly would be a firm covered in red flags. But it cuts both ways - the big software company in the article could very easily have dismissed the contractor team as wannabes, thanked them for their time and sent them on their way, rather than politely reminding them of the paperwork. I guess it's a game of brinksmanship on both sides.