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I used to do a lot of contract work and you need to have a good no nonsense contract. I always had a payment schedule in the contracts: 50% upfront and 50% paya

I used to do a lot of contract work and you need to have a good no nonsense contract. I always had a payment schedule in the contracts: 50% upfront and 50% payable immediately on delivery with milestones so they can check the progress of the work. Of course, when building Web sites or Web apps, it's easy to do. Sometimes, for larger contracts, we would have a 50%, 25%, 25% schedule. Of course, you either put the site/app in production with the last payment or advise it will be put offline if you don't receive it. It just works. Worse that happened was a bad client who changed his mind at the last minute and we lost about 25% of paid work. If you profitability margin is within standards, you take your losses (which are almost none) home when you see they'll never pay unless you go to court (which they probably won't pay anyway because they're crooks in the first place). Not worth the stress or waste of time and money.

kls 15y ago
I have to agree with your observations, I know it does not help with the current situation but getting 50% up front does a lot to mitigate the risk of non-payment. If you receive half the project price up front then you are at least not walking away having worked for free. You have just made less per-hour than you would like. Also build the price of hosting the site or application on systems that are managed and paid for by you. This way you can legally withhold delivery of the final product until all payments are rendered. Too many times freelancer will work on client provided systems which immediately sets them at a legal disadvantage for seeking recourse by withholding the software. You run afoul of computer invasion laws if you enter their systems and remove it. If a client insists that it has to be done on their machines, you can insist back that you have an optimized workflow and system that support you achieving the goal in the least amount of time and that it is company policy that you work on your companies systems. The thing about doing this is it makes it easier for the court to discern who owns the code and more importantly when the conveyance of ownership was transferred. In the end though, try to avoid getting in the situation to begin with, it is a lot easier than trying to get out of it; because in the end unless it is over 10k it is probably less of a hassle to focus your efforts on getting more gigs. Legal remedies consume your time and cost your money.
mattdeboard 15y ago
Hm, I thought the general advice was to bill by hour, not by project. Is this wrong?
- damoncali 15y ago
  Depends. You just need to make sure you get paid the proper amount in the end. Some clients want hourly, some want fixed cost. In either case, you must invoice periodically, not all at the end. If you work hourly, begin with an up-front retainer. If you bid fixed cost, get 50% or 25% or whatever up front. Don't start coding until you get a check. Once someone has paid up front, the chances of them paying in the future go way up.
  - mattdeboard 15y ago
    What about situations where a client wants you to "take a look at the code"? In my very very limited experience I've told them I'll spend an hour or two on spec going over the source to evaluate before giving an estimate. Is this too little, in your opinion?
    - damoncali 15y ago
      Do whatever you have to do to get the sale, but realize it's on your dime. Once you have agreed to a contract, get paid and then start. I usually meet with the client, look over their wireframes, and do a little research before signing a contract. Typically, that takes me an hour or two. Any more than that, I usually want to start getting paid. But do whatever works for you.
cdr 15y ago
This is great advice on contracts: http://vimeo.com/22053820 http://vimeo.com/22053820

kls 15y ago

I have to agree with your observations, I know it does not help with the current situation but getting 50% up front does a lot to mitigate the risk of non-payment. If you receive half the project price up front then you are at least not walking away having worked for free. You have just made less per-hour than you would like. Also build the price of hosting the site or application on systems that are managed and paid for by you. This way you can legally withhold delivery of the final product until all payments are rendered. Too many times freelancer will work on client provided systems which immediately sets them at a legal disadvantage for seeking recourse by withholding the software. You run afoul of computer invasion laws if you enter their systems and remove it. If a client insists that it has to be done on their machines, you can insist back that you have an optimized workflow and system that support you achieving the goal in the least amount of time and that it is company policy that you work on your companies systems. The thing about doing this is it makes it easier for the court to discern who owns the code and more importantly when the conveyance of ownership was transferred. In the end though, try to avoid getting in the situation to begin with, it is a lot easier than trying to get out of it; because in the end unless it is over 10k it is probably less of a hassle to focus your efforts on getting more gigs. Legal remedies consume your time and cost your money.

mattdeboard 15y ago

Hm, I thought the general advice was to bill by hour, not by project. Is this wrong?

damoncali 15y ago
Depends. You just need to make sure you get paid the proper amount in the end. Some clients want hourly, some want fixed cost. In either case, you must invoice periodically, not all at the end. If you work hourly, begin with an up-front retainer. If you bid fixed cost, get 50% or 25% or whatever up front. Don't start coding until you get a check. Once someone has paid up front, the chances of them paying in the future go way up.
- mattdeboard 15y ago
  What about situations where a client wants you to "take a look at the code"? In my very very limited experience I've told them I'll spend an hour or two on spec going over the source to evaluate before giving an estimate. Is this too little, in your opinion?
  - damoncali 15y ago
    Do whatever you have to do to get the sale, but realize it's on your dime. Once you have agreed to a contract, get paid and then start. I usually meet with the client, look over their wireframes, and do a little research before signing a contract. Typically, that takes me an hour or two. Any more than that, I usually want to start getting paid. But do whatever works for you.

cdr 15y ago

This is great advice on contracts: http://vimeo.com/22053820 http://vimeo.com/22053820