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Ask HN: Independent consultants, how do you structure payment contracts?

7 点作者 charliebwrites12 个月前
When you partner with a company or person to do work for them, how do you structure your contract to ensure payment and that both parties are satisfied and protected?

4 条评论

eitchugo11 个月前
First I do the &quot;pre sales&quot; for free, meeting with the customer and their team, get to know what exactly they need, how much time, signing an NDA and studying their current infrastructure if they&#x27;re interested. I do this for free because it helps me understand if the customer has a good position and if the work makes sense for me.<p>Then I write the contract, usually separated in phases. Each phase has its own schedule.<p>For &quot;short&quot; contracts (like one or two months), I send an invoice after the first phase, with about 50% of the value. Then 50% after the work ends.<p>For longer contracts (6 months+), I divide the total cost between the months. So if a project is 10k for 5 months, I send an 2k invoice each month. Depending on the customer, if they don&#x27;t pay in at least 5 business days after the invoice is sent, I stop working.<p>After the contract ends, I usually provide 30 days of email&#x2F;chat support to answer questions (and not hands-on work).<p>This is working very fine for me, but sometimes things could go wrong, so having a good lawyer ready is great as others said in this thread.<p>Good luck!
zer00eyz12 个月前
%25 percent the day you sign. This covers what it cost me to scope the work and bid on the contract.<p>%50 The day I am done writing code. This code should meet all the spec&#x27;s you set out in the agreement.<p>%25 percent after QA&#x2F;Live. There are always bugs it has to go out, a last minute tweak or two, general deployment support.<p>You can cancel at any time but pay me out to the next point in the contract. If you sign up, and cancel the next day I get 75 percent. Someone will tell you that&#x27;s &quot;not fair&quot; or &quot;we wont cancel&quot; ... then they should not have a problem with the terms, if you are serious they aren&#x27;t at issue.<p>Have a major scope change. Pay out the contract and let&#x27;s write a new one. Or we can negotiate an amendment... Either way it&#x27;s very hard for you to rug pull me.<p>Get a very good lawyer. Pay them well. It will hurt at the start, but in the end you will be better off for it.<p>This is all you need to know: <a href="https:&#x2F;&#x2F;www.youtube.com&#x2F;watch?v=jVkLVRt6c1U" rel="nofollow">https:&#x2F;&#x2F;www.youtube.com&#x2F;watch?v=jVkLVRt6c1U</a>
bruce51112 个月前
Obviously clear expectations help.<p>I ask for monthly payments in advance. This only works though because &quot;you need me more than I need you&quot; and I&#x27;m happy to walk away (I have other work to do.)<p>This is framed as &quot;risk&quot; (ie, I don&#x27;t take any, so I don&#x27;t need to cost it in.) For any kind of &quot;after the fact&quot; payments I assume the risk you won&#x27;t make the last payment, so I price that in.(ie I jack the price so I&#x27;ve got what j want before the last payment.)<p>I won&#x27;t start work until you&#x27;ve put some loot in my account. If I start working for free I can expect you to keep moving the goal posts. Since I&#x27;ve already &quot;invested&quot; time in this project I&#x27;ll be happy to make some changes to get us over the line right?<p>Fundamentally it helps when setting up the partnership, contract, whatever to decide how much risk you want to take on. That comes with experience. But I recommend managing risk carefully. Ideally risk should be balanced. (Getting paid 90 days later, if they feel like it, isn&#x27;t balanced.)<p>Sometimes I work with them to overcome procurement hurdles. One place could only pay 50% up front, 50% on completion. I doubled the (fixed) price. I got paid up front, their procurement system was happy. I can choose to give a generous settlement discount at the end, or not, depending on their behaviour during the contract etc.
gregjor12 个月前
Don’t put yourself into a position where your client owes you a lot of money, or you owe them a lot of work.<p>You have to decide what “a lot” means in context.<p>I avoid getting into such situations by agreeing to well-defined milestones and deliverables, so the client sees regular progress and I have frequent billable events. Neither party ever gets too obligated to the other, and either party can terminate or change the terms without putting a lot of money or work at risk.<p>You can also use escrow, possibly useful when dealing with clients you don’t trust, but I would avoid getting involved with clients who give you a bad feeling or have a reputation for no pay&#x2F;slow pay.<p>Lawyers and contracts won’t save you from an unethical client (or consultant). Contract disputes generally go to arbitration in the USA (by statute). A lawsuit can consume a lot of time, money, mental energy, and ruin your professional reputation. Better to avoid getting into those situations rather than prepare for legal battles.