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In my company's contract, we limit our liability to the amount paid by the client. Without a liability limitation clause in the contract, you're taking on a pot
by davideous 10y ago
In my company's contract, we limit our liability to the amount paid by the client. Without a liability limitation clause in the contract, you're taking on a potentially unlimited amount of liability in each project. It's not worth the risk. A few good paragraphs in the contract make all of the difference in the world. If you don’t have a liability limiting clause, you should.
Also, this client engagement started going wrong from the very beginning, when the team allowed so many changes for free, and even launched the website without final payment.
I'm all in favor of over-delivering -- and I probably also would have fixed the problematic PSDs for free -- but 294 hours of work on a 116 hour project, launching the website without the required final payment, and then continuing to do work is way too much.
- alexissantos 10y agoGreat idea!
- uiri 10y agoIn my company's contract, we limit our liability to the amount paid by the client. The amount paid by the client in this case was $12k so that wouldn't have changed anything except perhaps the scary lawyer letter (which they successfully deflected). launched the website without final payment This was perhaps the biggest mistake here. It would have been much better to fire the client: "OK, we're done here. You're fired. We're keeping your deposit, ceasing work and not launching your site."
- deleted 10y ago[deleted]
- communejb 10y agoHow do you fire a client? What's your contract clause read that allows this? The challenge (as I see it), is that if you're contracted to perform X work for Y cost, if you 'fire' the client, you're the one breaching the contract and thus liable for a claim? What language do you use to 'fire' the client?
- joelx 10y agoThe contracts our company uses do include a limitation of liability to the amount the client pays. I agree that the big mistake we made was to allow so many changes for free and also to launch the site prior to final payment being received. I have policies in the company against both of those things, but my project managers have a strong incentive to be lax on them. If they raise a flag, it will result in an unhappy client and an unhappy manager and they will be caught in the middle. It is easier for them to just push stuff through and hope it goes unnoticed. This has been a difficult issue for me to resolve and I am still trying to figure out better ways to incentivize my team to avoid this. It's a bit of a balancing act.