I'm working on modifying the contract that was in the resources section (so helpful!), and I am not completely satisfied with the wording on the payment section. I feel like I am missing something, but I am not sure!

Any help would be appreciated.


Payment terms may change if agreed upon and signed by both the Client and the Consultant.

(Retainer) The Consultant will provide Services to the Client at a rate of *$rate* per working hour based on *xx* hours per month retainer rate. Payment will be made for the month in advance. The payment may be made monthly to the Consultant. The Consultant will provide the Client with a balance of hours on a time sheet on a monthly basis.

(Hourly) The Consultant will provide Services to the Client at a rate of *$rate* per working hour based on an estimate of *xx* hours. An estimate of hours will be provided to the Client. A deposit of 50% of the estimate will be required prior to the beginning of the services. The actual remainder of the fees accrued must be received prior to delivery or completion of the services.

(Project) The Consultant will provide Services to the Client at a project fee of *$rate.* A 50% deposit will be required prior to the beginning of the project. The remainder of the fee must be received prior to delivery or completion of the project.

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Behind the Desk Solutions - Carrie

Carrie, what is it about this that feels unfinished to you or what kind of terms/info were you thinking of adding?

My own proposals/agreements include dates [for project-based work] and touchpoints throughout the project, as well as things like items the client must provide. My hourly contracts are pretty simply stated and just lay out the hourly rate. Both include a short non-disclosure clause and a clause stipulating that client's failure to deliver necessary elements will impact the deadline and possibly costs.

Have you included late payment penalty info? That's something I don't see mentioned here that I would be sure to include.

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This only highlights the payment terms. In general, I would not include both the hourly and the project terms in the same contract. Use one or the other. Of course, within the contract, "services" would have to be clearly defined, the manner in which payment should be made (direct deposit, paypal, check, etc.) may also be helpful. Without looking at the entire contract, I really can't offer you much assistance but I concur, there are several things missing from this section.

-Damon, Virtual Assistants of Georgia

Thanks for the insight. This is actually just the payment terms section. My plan was to use whichever category (hourly, retainer, or project) only in the contract. I like the the addition of the 'manner' to the terminology. I think that gives it one of the missing pieces!

Thanks

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Behind the Desk Solutions - Carrie

Carrie,

If you are taking a deposit, which I would recommend that you do for retainer, hourly and project, you should say if and when the deposit would be returned and/or applied to the next month's work.

You might also say what to do if the pre-paid hours will or will not be rolled over to the next month.

I also like to include something about how 'good' the offer remains on the table (if they don't sign immediately) and something about your option to raise raise rates after X amount of time.

Janine Gregor

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I find it useful to have 3 separate contract templates, one each for hourly, project and retainer. Then I only need to fill in the blanks and perhaps make a change or two depending on the client rather than crafting/drafting the whole thing every time. I also review and amend the contract templates occasionally.

Lynne

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Have to agree with Lynne completely. I use multiple template contracts where I just have to fill in the blanks.

Before I used one contract that was universal and you would just check the different options but I now like the multiple template method much better.

Hi,

I have not drafted a contract as of yet. But I know some of the things I would like to included in the payment section is when payments are due, bounce check fee and late fee. I want the client to know that this is a true business and should be treated as one.

Also, I think it is more efficient in terms of communication to have a different contract for each type of payment agreement.

Just wanted to share my thoughts.

I have created a few different contracts so all I need to do is fill in the client information and make any relevant changes.

Thank you all so much for sharing your contract protocols, it's very helpful to those of us who are new to this business.

Cheers!