The dynamic contract clauses


The dynamic contract clauses are the clauses that change for each project you work on for any one client. Whil Hentzen ‚ s The Software Developer ‚ s Guide refers to this as the Engagement Letter. Other developers add some of these clauses to their Statement of Work, which is an appendix to their main contract.

Definition of services

The definition of services the developer is going to provide the client for a specific project. This clause answers the question, ‚“What are you going to do for the client? ‚½

  • Does this project include analyzing and reviewing an existing application?

  • Does a formal specification need to be prepared?

  • Is training included?

Project scope

This clause describes the project ‚ s scope and includes, but is not limited to, the proposed start and target ending dates, and a list of the proposed deliverables for the project. This clause should also include a paragraph about what is not included in the scope. The more descriptive you are about what is in and out of the project leaves less room for assumptions and conflict.

Payment schedule

This clause answers questions like: When are the invoices payments expected to be made? Are payments expected upon delivery of the invoice? Do they get Net-10/30/45/60? What happens if the client is late to pay? This clause includes your current rate(s) [Rate is plural if you have different rates for the different types of services you provide.], payment terms, and any fees or actions you take on overdue invoices.

You need to let the client know from the beginning regardless of what you may know about their payment history what you intend to do when invoices are late. We have heard so many times from other consultants say ‚“They ‚ ve never been late before. Should I start charging them interest? Should I include a timer that renders the program unusable until they pay me? ‚½ You can ‚ t wait until this happens, and then decide how you should handle it. When putting your contract together think about how you would answer these questions and include your answers in the contract. This lets the client know from the start any actions you intend to take on overdue invoices. You will stop working until invoices are paid and they will be charged interest, and/or you program in a time limit until the client makes the final payment.

Whatever you do, examine your payment schedule and associate payments with small milestones that allow for more frequent and smaller invoices. This keeps from overwhelming the client and you are paid quicker. Make sure the last payment is not so huge that if they don ‚ t pay you, you haven ‚ t lost your shirt.

Exceptional expenses

Exceptional expenses are defined as expenses not covered in the consultant ‚ s hourly rate. Some examples are long distance phone calls, parking, travel, etc. The consultant benefits from this clause by letting the client know upfront that payment is expected for these expenses. The client benefits because they are aware of what is not included. Additionally, the client may have some input into how to control some of these costs because the client is paying for them. For instance, the client may get better rates on parking in a particular lot, may use their own travel agent, or have a corporate account at a nearby hotel. Controlling exceptional expenses could also be done by either party putting a cap on expenses like per day costs.

This clause could change per project or per client. You will have to decide if it belongs in the dynamic contract or the static contract.

Support clause

None of us seems to have much experience using Support Contracts. Some of us include a support clause. This clause is there mainly to make sure we are paid for any support we provide. But what is support? The answer to this question is why including a clause that defines support is important. Every developer ‚ s definition can be different. It ‚ s up to each of you to decide what kind of support you are going to provide. We typically charge on a time and materials basis for support of existing applications, mentoring, training, business advice, hardware support, etc.

But what about support for the custom application I just created for the client? You might ask. You could provide 30 (60, 90, etc. whatever you feel most comfortable with) days of free support, anything after that is done on a time and materials basis. Many third-party developers are now using yearly subscription support. Subscription support includes an on-line user -touser support forum monitored by the developer and updates to the software application when they become available.




Deploying Visual FoxPro Solutions
Deploying Visual FoxPro Solutions
ISBN: 1930919328
EAN: 2147483647
Year: 2004
Pages: 232

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