Proposal & Contracts for Consultants

A contract can help  ensure you get paid for your services, and avoid misunderstandings by ensuring you and your client have the same expectations of the work to be done. Your contract should spell out what services you will provide for the client, when you will provide them, as well as when and how you are to be paid.

Your Proposal

After your first meeting with the prospect, tell your prospect that you will send them a proposal. 

Use the Services Proposal 

Whose contract is used?

Whose contract should be used to cement the terms of your engagement with the client?  The client's or your contract? The answer is - it depends. Here are the pros for each. 

Pros - Using your Client's Contract	Pros - Using your Contract
The courts view the creator of the contract as the one with the most power in the relationship and is more vigilant on that party to making sure the t's are crossed. If you use your client's contract, there will be more onus on them to make sure it's contractually sound.	The contract will be skewed in your favor and you can include clauses that are beneficial to you. Your client may not be savvy enough to understand some of the clauses in your contract. You can limit your liability.

Negotiating your Contract

Whatever contract you use, make sure the first round is sent in a Word document so that both parties can show desired changes in tracking.

A key negotiating skill is knowing when to back down and when an item is a dealbreaker.

Important Clauses to include in your Contract

You should never start a project without a written contract no matter how eager your client is in having you onboard. Here's some clauses that every good contract must have:

• Scope of work - carves out what your deliverables are which are used as a measurement of your success/contributions.
• Ownership of completed work - refers to rights to work produced. 
• Non Disclosure Agreement - you and your client will come across confidential information. This reinforces both parties responsibilities in keepign the information just that - confidential.
• Payment - addresses how much (consulting fee), how (mode of payment) and when (timing of payment) you will be paid for your services.
• Termination - what are the parties obligations for early termination of the contract.

For a contract template, refer to Client Contract Agreement.

Getting Paid

• What type of payment terms do you include?
  • Insist on electronic payment - either by email or by direct deposit.
  • Try to indicate payment upon receipt, rather than 10 or 30 days.