Informal Contract
So it just dawned on me, after having spent yet another weekend on this project, that maybe there should be a cap on the time or the number of revisions allowed within the scope of the bid.
Oh wait, we do have a cap in our contract. So (scratching my head), why am I now working on revision #4,536,136? Oh, that’s right, because this is for the one client that we have for whom we did not prepare a formal contract for.
This brings to light a fundamental concept… Contracts are for people who think they don’t need contracts.
If we deal with someone who is insistent on a contract, you can be assured they are the type of client that likes to know exactly what they are buying and will ask for little more or less than what they pay for.
If, on the other hand, a client shrugs at the concept of a contract, and tells us that it’s not necessary, or even worse, that it’s too formal, then you can bet that we will be working 10x harder than what we had agreed to.
In fact, even having a formal contract may not be good enough if the contract is not very specific. Regardless, one thing’s for sure, not having a contract at all is a certain recipe for disaster.
hahah .. dude that image is awesome. And you have my sincere apology for allowing this to happen.
The point you are making here is the need to have a clear bid combined with our contract. The point of the contract being to support the items in the bid.
no sweat about how this came about. it serves as an excellent source of valueable lessons. a.k.a. we’ve learned from this not to do it again.
One thing this makes me think about though, we sign contracts every day with vast quantities of small print. It seems unfathomable to me that anyone can actually know what they are agreeing to.
maybe we need more small print in our contracts
Its one thing to have the contract and another thing to actually enforce it — ie not be such a softie when it comes to revision #34342 that is actually getting to the point where it is no longer my design anymore…
I don’t have a problem with contracts — what I have a problem with is saying “no” or “thats fine but it will cost you”. I am a pushover when it comes to getting things right and revisions.
How do you draw that line in the sand when you are on your own, and want to provide them with good customer service, but not be a pushover at the same time?
Its hard huh!
Good point Téa!
Truthfully, Shane is the expert at drawing that line on our team. As one contractor once said of him, he has a Dragon guarding at his gate.
I’ve often had the privilege of observing this fascinating process…
The client is reviewing comps with us on the phone. The client starts to talk about a whole other rev. My stomach flips and I want to scream ‘Nooooooooooo!’ But shane simply says ‘Ok’ with a delightful tone of voice.
After the client has expressed all their desires, Shane, having actively listened and taken part in indulging in the client’s fantasies, kindly informs the client that we are at the end of the budget for revisions and will have to work up some new numbers for the next rev.
The client now has 2 options:
1) Be happy that we listened and pay us to do more work.
2) Be impressed that we stood our ground and cease new work. In this case, we are setting an expectation for work further down the line. If the client knows that we are not going to cave, then they will be better prepared next time and we will all maintain a positive relationship.
The big issue is that sometimes the client will be willing to pay more, but we didn’t schedule more time for them. What do you do when you thought a project would be done, and the next 4 projects are starting?
I suppose you have to tell the client that the next few revs will have to wait, but I can see that not working so well. hmmm.
I am starting to think that Shane might have balls of steel
I think that the answer was in your post — in that it is completely in the delivery, listening to them and how you respond to clients. Interpersonal skills plays a big part in this, and if you see projects as adversarial rather than a team effort, then you will get adversaries!
I think a lot of Freelancers make the mistake of thinking that clients should be grateful for our sheer brilliance and will put up with attitude. Even though a little ego never hurts the creative types, I actually disagree with this and think it can damage projects. I also think that those who last in this business do have to learn about customer service, teamwork and project management.
Listening to the client is one of the best skills you can learn. One thing I am good at is extracting what they are saying, getting a sense for who they are and what they like, and generally manage to deliver concepts in the first go. Of course, we then work back and forth to get things exactly right, but the key is about listening - and making them feel like you are listening to them, and that they are paying a professional to act in their interests!
Trust is so important, and you can build that trust by listening and delivering what you promise. When you have that trust, when you say “it will cost more”, they will be willing to pay, because they TRUST you.
Seems that Shane has this sussed as well - and its great that you have someone that can draw that line in the sand for you. I am taking Jason on as a partner soon, mostly because he is good at that as well.
Its a tough balance, but I am getting there!
I just want to add that once you build your network of trusted vetted contractors this will allow for you to take on those extra project “extensions.” I can see how this would be a great source of “added value” for your client.
It shows that you are willing to go the extra mile, but it’s not free.
Having Shane be the guard at the gate is a great thing. The more value you place on your business, the more they will value you.
Boundaries are essential. I think you two are doing great and definitely heading down the right road.
I laughed out loud 3 times so far reading this post Peter. The awkward, bone chilling kind of laughter that curled my spine and makes me want to turn and run, but laughter nonetheless. Yes, contracts are for people who don’t think they need contracts. Anyone in our business could tattoo that across his forehead and it’d be a pretty good start… Having just gotten out of not one, but 2, count em 2! deals where myself or an associate was screwed via no-contract-itis, I just want to reaffirm your sentiments and share in your pain. Your followup about Shane was spot on by the way. Dragon though? I’m thinking something a little less ferocious and a little more diplomatic… like a Jedi. Yeah, that’s it - Shane Skywalker.
Prospect: Let me see your portfolio.
Shane: [with a small wave of his hand] You don’t need to see his portfolio.
Prospect: We don’t need to see his portfolio.
Shane: These aren’t the contractors you’re looking for.
Prospect: These aren’t the contractors we’re looking for.
Shane: He can go about his business.
Prospect: You can go about your business.
Shane: Move along.
Prospect: Move along… move along.
Jedi - Dragon - Whatever you call it - I really like it when we win and when we make money and make a difference. If I can’t see how that happens, well then … move along.
=)
You could have just as easily gone with Anakin’s quote about “aggressive negotiations” (that is, negotiations with a lightsaber), but your little parody quote caught me completely off guard and laughing hysterically. My morning is made
Nerds.
oh yeah, throwing around big word on our blog huh. At least you are being nice about it. I was scanning your blog yesterday - dude Tea, your hubby cracks me up.
I prefer geek personally. Nerd is more of a social skill impediment.
Because its too good not to share - Tea’s IM rebuttle:
courtesy of dictionary.com
geek Slang.
–noun
1. a peculiar or otherwise dislikable person, esp. one who is perceived to be overly intellectual.
2. a computer expert or enthusiast (a term of pride as self-reference, but often considered offensive when used by outsiders.)
3. a carnival performer who performs sensationally morbid or disgusting acts, as biting off the head of a live chicken.
You know - forget the Jedi,
We need a carnival performer who bites the heads off live chicken at the gate! Maybe we should have included that in the craig’s list description for office manager.