What type of contract do you use? A simple plain English contract that states project scope, time frame, and payment terms or something more complex written by a lawyer?
I've used both styles and I have mixed thoughts. The simple contract mostly protects against misunderstandings with respect to scope, time frame, and payment terms and little else. The complex version (http://www.taps-inc.com/photos/1_agreement.pdf&apos ;">sample contract from our state association) is four pages and covers just about every conceivable conflict or adverse situation. I like the simple format because most clients don't fuss about signing it. However, I'd prefer the safety of the complex version but every time I've used it the client's reactions remind me of the face you make when you've stepped on a doggie landmine in the yard.
I had two contract templates for my firm: simple for simple jobs and "Harry Homeowner" clients, complex for complex jobs and any client that had an in house or on retainer attorney
I think a well-worded contract could both protect you and keep your client from making that face.
The TN sample has a lot of unnecessary legalese, as well as at least one unprofessional and unenforceable limitation of liability: the ol' "limitation to the amount of fee charged" chestnut. If we claim this limitaton, we may as well give up any hope of professional standing.
Patient: "Hey Doc, you amputated the wrong leg, I'm suing you for all you're worth!"
Doc: "Sorry son, I only charged you $10,000, so that's all you'll get."
...doesn't pass the red-face test.
Wow, turns out I am completely wrong here (at least in many jurisdictions)! Thanks for the link.
Stephen Ward, post: 332628, member: 1206 wrote: What type of contract do you use? A simple plain English contract that states project scope, time frame, and payment terms or something more complex written by a lawyer?
It's tricky. I originally started using a simple agreement just to clarify and communicate to my clients exactly what I would do and how much they would pay. As different incidents or misunderstandings arose over the years, I have added new terms to try to protect myself.
I've tried to keep them to no more than two pages (printed on each side of one sheet) to try to keep from intimidating clients too much, but it is getting difficult now since I would like like to add more terms (ownership of documents, in particular) and I'm running out of room.
I did have a client a couple years ago remark that my agreement was more legalistic than his international contracts, but as he and his wife read through each part of mine, his wife would remark "Well, that must have happened to him before." I told him that she was right, that was where each term came from, and he did hire me.
Another client once asked me to remove the term that said that they would be responsible for all legal fees if I sued them for non-payment. I did, and she hired me too. She thought it sounded very aggressive, like I was just itching to sue them. I have since removed that term.
Finally, one client sent back my agreement, signed by him but without the deposit. When I called him and said I needed the deposit like it said in the agreement, he said "Oh. I didn't actually read the agreement. I probably should have, since I'm an attorney..."
I have two contracts, one for residential home owners being 1 page and one for developers/commercial projects having 4 pages.
The problem is you don't need a contract until you need a contract and you don't need a specific clause in a contract until you need a specific clause in a contract. The easiest process is to outline the scope and fee very simply and attach Standard Terms and Conditions that cover most everything that could possibly go wrong. The bigger problem that I have is reviewing the contract provided by my client and sorting out the double speak. Particularly, clients that don't understand that we are not contractors.
I just got the contract back from the client's attorney......the only things that survived were my scope, timetable, and payment terms. Everything beyond that was re-written 110% in the client's favor. I've sent it to my insurance underwriter for an insurability review. Hopefully we'll end up meeting in the middle as far as the legalese terms go.
Stephen Ward, post: 332778, member: 1206 wrote: I just got the contract back from the client's attorney......the only things that survived were my scope, timetable, and payment terms. Everything beyond that was re-written 110% in the client's favor. I've sent it to my insurance underwriter for an insurability review. Hopefully we'll end up meeting in the middle as far as the legalese terms go.
Or maybe it is time to consider walking away...?
Brad Ott, post: 333094, member: 197 wrote: Or maybe it is time to consider walking away...?
I'm playing it by ear right now.
The client is a municipality where I've done a lot of work, just not directly for them. I know the key players and work well with them so I'm not walking just yet. Apparently using the TAPS contract triggered a review by their staff attorney. Rather than reviewing the contract and making a few changes they went nuts and re-wrote the contract completely (almost punitively in their favor). I think a frank conversation with the key players who requested my proposal will get the field leveled.
Stephen Ward, post: 333098, member: 1206 wrote: I'm playing it by ear right now.
The client is a municipality where I've done a lot of work, just not directly for them. I know the key players and work well with them so I'm not walking just yet. Apparently using the TAPS contract triggered a review by their staff attorney. Rather than reviewing the contract and making a few changes they went nuts and re-wrote the contract completely (almost punitively in their favor). I think a frank conversation with the key players who requested my proposal will get the field leveled.
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