The Three Keys to Clear Client Contracts

Only three you say? But that can’t be right, Contracts need to be long, detailed and steeped in legalese, don’t they?

Look, you are providing professional services, not buying the Brooklyn Bridge.

Grab the original work description that your client provided and the proposal that you prepared. Have any emails or notes from phone calls and any other supporting documentation that might be involved and use these to develop a Letter of Agreement that includes:

1.    Scope of Work
Summarize the main points of the proposal as both parties have agreed. You don’t need to include every detail of the proposal but you do want to give a succinct overview of the work to be performed.

For example, Research to be performed to determine the top 10 gardening membership websites based upon the following criteria:
•    Google Page Rank
•    Alexa Rating
•    Number of members
•    Length of membership
•    Testimonials

2.    Production schedule
Detail the schedule and reporting methods.

For example, Summary reports to be sent every 2 hours via Google Docs Account up to a total of 10 hours. Client will review progress report and submit feedback within 24 hours of receipt of report. Project to be completed within one week of agreement.

3.    Price and Payment Terms
Clearly state the amount to be paid, how it will be paid and when.

For example:
Project rate: $200.00 total to be paid in $40.00 installments within 24 hours of submission of progress report. If additional time to research is required by the client this contract can be extended in 2-hour increments at the same rate and payment terms.
Payments to be made to PayPal account: VA@VAdomain.com.

Keep in mind that you want to include as much detail as necessary (the above is just an example) but that you also need to keep all documents and communications as backup records. Having expectations clearly delineated will help to manage scope creep and budget creep.
To help you get started, check out www.docstoc.com, an online community to find and share professional documents. You can get a lot of samples here and tailor a contract to meet your needs. You may want to have an attorney review the first few that you do, just to dot your i’s and cross your t’s. Just remember – it’s their job to make things overly complicated, which can sometimes mean overly confusing. Add your common sense to the mix.

Often business owners are concerned that they will be seen as untrusting if they insist on a contract. Being trusting is a great thing but you also have a responsibility to yourself and your business. Consider reframing your presentation. Explain to your client that you are committed to completing the work they are entrusting to you to their satisfaction. Having a clearly defined Scope of Agreement ensures that all parties’ needs are met.

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