RE: FN-FORUM: Advice on payment agreement.

date posted 20th July 2005 10:50

I agree entirely. The only thing I'd add is that I add that they may not
use the work for commercial gain until paid in full.

Cheers
Andy=20

-----Original Message-----
From: [EMAIL REMOVED] [EMAIL REMOVED] On Behalf Of Vasko
Ckorovski
Sent: Wednesday, July 20, 2005 10:26 AM
To: Andy Macnaughton-Jones
Subject: Re: FN-FORUM: Advice on payment agreement.


As a lurker on these forums...i would rate that as the most informative
post ever!

Well done.
# [EMAIL REMOVED]
>
> Hi,
>
> I would agree with Julian as to the payment splits and the absolute=20
> requirement to walk away if he won't do that or won't pay.
>
> 40% up front
> 50% on delivery (before the site goes live) 10% 30 days later as a=20
> "bug fixing period, where a bug is something clearly defined in the=20
> written spec that is returning errors or is absent"
>
> Create a written spec before the job starts and ensure he has signed=20
> off on this before you start the work, otherwise he'll be changing his

> mind every
> 5
> minutes and refusing to pay anything to waste your time.
>
> So the entire procedure should be, and this worked for me when I=20
> freelanced and it works for the company I work FT for now:
>
> 1. Agree rough spec and ballpark quote 2. You produce a written spec=20
> outlining what's going to happen and for how much. Do not produce this

> until the client has agreed in writing that you are going to be doing=20
> the job, otherwise he can take it to [much cheaper non-UK developer]=20
> and just ask them to do it for less.
> 3. The spec goes between you and the client until he agrees with it.=20
> If he can't pay what the spec will charge, remove stuff from the spec=20
> - don't do it for less.
> 4. Client signs off on the spec, signs something to agree with the=20
> spec and the payment terms, pays you 40% up front, development begins.
> 5. Show client stuff during development so he knows work is proceeding

> according to schedule and that you haven't done a runner with his 40%.

> If at any stage he says "ooh, can we have this?" or "oh, can we change

> that?"
> make
> a judgement call - if it isn't in the spec, you can charge for it as=20
> an enhancement as it isn't something he's agreed to pay for.
> 6. When the project is ready, tell the client. Move the project to
"live"
> only when the 50% payment has been received. Issue an invoice for the=20
> final 10% payment with a 30 day payment window.
> 7. Support the project for the agreed 30 day period, bug-fixing etc as

> required. After 30 days, if the client has not paid the 10%, turn the=20
> site off until he has.
>
> This works. If the client won't do any of that, move on, tell them to=20
> come back when they will. There are a few common-sense things to=20
> include along the way (eg. don't develop the site on their server,=20
> ensure their server can do what your development site can do etc), but

> it's basically sound.
>
> Good luck.
>
> Iain
>
>
> --
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>
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>
>=20
--
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