Do you work on contract basis ? Get answers for your questions

Sunday, 20 July 2014

Q: Will the client get annoyed if we don’t get a contract signed immediately?

 It’s common for there to be some back-and-forth while nailing down the specifics of a contract that’s agreeable to all parties – so don’t get frustrated, embarrassed or defensive – this isn’t personal, it’s business. As long as you keep emotion out of your conversations around contracts and agreements, your clients should respect your professionalism.

Q: What if I already have clients and subcontractors but no formal agreements?

Draw up a formal agreement and ask your client or subcontractor to sign it with you. You can explain that – under advice – you’re formalizing your business relationships to protect both of you.

Q: How are the actual executed contracts exchanged?

For years, fax was the typical method of choice for exchanging signed contracts (one party signs and faxes to the other, then the recipient signs and faxes it back). Today, most people have the ability to scan a document and email it as an attachment, so that has become the preferred method. Occasionally, a client will request that hard copies be sent after the electronic exchange as a formality. A very conservative client may want to FedEx hard copies back and forth, but this is unusual. Occasionally, a client will request that hard copies be sent after the

Q: I mainly work as a subcontractor to other agencies. Do I still need a contract?

Yes! It’s sad to say, but not all agencies are good about paying in a timely manner. It’s also always a good idea to clearly state what is and is not included in a given project – especially when you’re working with often overwhelmed agency staff.

Q: Can I use different types of agreements with different clients? 

Absolutely – in fact, that is recommended. A client on an annual retainer will require a more in-depth contract than a one-time project client. (See the examples to follow in this ebook.)

Q: How are contracts typically formatted?

For the purposes of this ebook, some formatting has been removed from the included example agreements. Your agreements should be placed on your letterhead, with your contact information clearly displayed. It’s also important to note (in the header or footer) “page X of X” for clarity.

Q: I’ve been presented with a contract that’s unfair and the client’s lawyer won’t budge – what can I do?

This is very rare, but it does happen. If you reach an impasse, then you have two choices: compromise or walk away. Work with an attorney to weigh the financial downsides in your particular situation against the monetary gain, and the choice should become clear.

Kellye found herself in this predicament when a potential client demanded that she carry highly expensive insurance that was not reasonable or customary (basically, the client wanted her to pay for their insurance). Because the annual billings far outweighed the cost, she bit the bullet, bought the insurance, and signed the contract.

Just keep in mind: you have the right to amend any contract or any non-compete agreement. Don’t enter into agreements where the risks outweigh the benefits to your business and your bottom line.

Q: Do you always include a termination clause?

A short-term project may not need a termination clause, but for longer engagements and retainer agreements, it can protect both parties to include this in your contracts (remember, you might be the one who wants to use it!). Large agencies often require 90 days notice, but 30 days is more common for independent communications consultants. This can actually be viewed as a selling point for prospective clients– you aren’t trying to lock them in against their will.

Q: Does it make sense to include a disclaimer to note that media coverage/results are not guaranteed?

Most purchasers of media relations services are aware there are no guarantees, so a statement of this sort is unusual. For that reason, we wouldn’t include one as a regular practice (lest it raise concerns). However, if you’ve had to educate your prospect and want to emphasize this point, you could include a statement, such as “[Your company] does not guarantee results. Past results do not guarantee future results.”

Q: Are contracts the only types of agreements I’ll need?

No. On the pages to follow, we’ve included examples of the most common types of formal agreements:
-Letters of Agreement
-Full Contract
-Performance Agreement (used when working on events)
-Subcontractor Agreement
-Non-Disclosure Agreement
-Speaking Agreement