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Thread: Payment Terms

  1. #1
    Junior Member treborsrednuas's Avatar
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    Hello all,

    I am unsure how to proceed with explaining to clients how payment for a project works. For example, would it be best to include details in paper form within the contract, tell them after contract signing or tell them prior to contract signing?

    Which would be more professional?

    Many Thanks

    Rob
    m3n0tu18 likes this.

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  3. #2
    WDF Staff AlphaMare's Avatar
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    Rob, I have an RFP (Request for Proposal) document that includes the payment terms before any price is discussed.

    I let the client know up front that I expect 1/3 as soon as they decide to hire me for the job and sign the contract, 1/3 after the final layout and design is approved, and before the coding starts, and the final third upon completion of the site but before I launch it on their servers.

    I also make it clear that as the second and third payments are due after work is done, they are non-refundable. If for any reason the client decides to quit the project, I retain all monies paid up until that date.

    The reason for the final payment being before the launch is due to the fact that early on I had a couple of clients who approved the final site and I uploaded it to their servers, and then they started wanting "just a tiny change" and wouldn't pay because they stated that the site wasn't finished.

    Now these are just the payment terms. I don't quote a price until later, when I've had time to look at their requirements and estimate the time involved. After I make the estimate, if they accept it, we both sign a contract that lays out the terms again, just to be clear, and the first payment is made at this point.

    Hope this helps.
    treborsrednuas likes this.
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  4. #3
    Senior Member Webzarus's Avatar
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    My contract and payment terms are very simple, included in the contract, and all are signed off before coding starts.

    I do some visual representation ( images ) and a wireframe for functionality on my dime, anything and everything else is in the contract.

    My contract clearly states I own all copyright and intellectual property rights to all my work until the contract is paid in full. Ownership of coding transfers to them on payment of contract negotiated.

    I have a clause in the contract that clearly states, anything outside of the scope of the original contract can be grounds for a new contract on that work, or they can choose to pay a flat rate per hour for said work, all is backed up with email thread as verification of requested changes and rates for those changes.

    Also, I rarely allow more than 1 person from the firm to make requested changes, this eliminates a lot of confusion. If more than 2 people are allowed, they must both be aware of the requested changes as verified by email threads that show both individuals are in the loop.

    But then again, each client is different, and my contracts and terms generally weed out potential problem clients early on.

  5. #4
    Junior Member treborsrednuas's Avatar
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    Thank you for those pointers there. Very useful. I think I'll inform clients early on about payment terms and make it clear to try and avoid any confusion in the early stages.

    Regards
    Rob


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