(no subject)

[nonelvis]

If you run a services business, are thinking of running a services business, or freelance, you should watch this. My business has been fortunate enough that we've never had to sue anyone for payment, but have we had problems getting paid? Oh yes, and any small business owner will tell you the same thing. What saves our asses? The contracts we have people sign. It's not about screwing anyone; it's about setting the terms under which we deliver services and get paid, and making sure our interests, as well as the client's, are protected.

Comments

[nonelvis]

That sort of retainer isn't one I've commonly seen design firms use, and I know at least one of our clients wouldn't go for it. But some of the larger corporate ones might ...

[profrobert.livejournal.com]

And not all of our clients will agree to a retainer at all (though if they do, it's always evergreen). At that point you have to decide if you're willing to take the risk and whether the business is worth it.

Here's the type of language we use: "As is our usual practice, we will require an 'evergreen' retainer at the outset of this Matter. In this case, the amount of the retainer will be $________ [two months' anticipated work is a good starting point]. You agree to restore the retainer to that amount upon the receipt of each Statement from the Firm. If the scope of the anticipated work on the Matter changes, the Firm may lower or raise the retainer amount required. Any amounts on retainer remaining after the completion of the Matter will be returned to the Client."

How long is your standard contract? I'm not an active member of the Mass. bar, but I'm happy to spend 10 minutes looking at it to see if there are any things that jump out at me.