Question - Money up front on web design project

ChicoMendez

How much would you request on the signing of a web design / multimedia contract (suppose the total amount is 20Gs!)?

seamus

Work out yourself what you need. Sounds like a massive project for 20K, so you'll probably need to buy software, licences, maybe some hardware.
You'll probably be working solely on this project as well, so you'll need money to live on, so work out the minimum you'll need to live on for the duration, deduct any money you have saved (or are due) and the balance is what you need.

Then again, some people just ask for 50%

ChicoMendez

How do you draw up contracts?
Do you have payment of % on signing, then % at agreement of site design, etc etc etc?

Fergal C

Chico,

I don't have experience of web contracts but in b2b contracts such as for training I have seen simple fee structures such as 1/3 prior to commencement, 1/3 half way through and 1/3 on completion.

For other business to business sales, contracts would sometimes specify set-up fees paid prior to commencement, a management fee paid weekly or monthly throughout the duration and the balance upon completion.

It would not be unusual to charge for your out of pocket expenses in advance. Ie along the lines suggested by Seamus, you could charge in advance for items you have to purchase specifically for this work such as licences.

I obviously don't know your circumstances or the details of your relationship with the client but if this is a very large contract for you I'd suggest caution. Ask yourself what would happen if the client delayed payment or even worse didn't pay at all? And how you can protect yourself against not getting the final fee.

In summary I'd suggest getting as much up front as you think the client is prepared to pay.

Just ideas hope they help.

Henri

The Corinthian

How much you ask for up front varies on the project, the lifespan and the client. Getting 40%-50% up front is not unusual as is a 40-30-30 type payment breakdown (40% on signoff, 30% on delivery of project, 30% on debugging/documentation). These percentages are obviously either based upon a fixed price project or an estimate, base on ‘time & materials’.

While contracts are generally exchanged, more important is a project specification with a clear list of deliverables – without one of these you’ll soon become victim to the dreaded creeping featuritus. Additionally a separate cost and payments schedule should be drafted detailing haw payments are to be made. Your client should sign off on both.

RicardoSmith

Originally posted by ChicoMendez
How do you draw up contracts?
Do you have payment of % on signing, then % at agreement of site design, etc etc etc?

You should. If they won't agree to that, then its a cowboy outfit and you'll have a job getting any money out of them.