Some might think of contract work as an extra pay check, but you should take it a lot more seriously than that. You might even want to read my posting from earlier in the year titled, Non-Compete Laws, The Ugly Part of Contract Work.
I recently got a ping from the Doostang blog about this topic and felt it was important enough to revisit. There are all kinds of laws, non-compete to name one, and cautions that go along with this type of work and with so many people still unemployed many more might be signing up for contract work than ever did before. Take caution and then reap the rewards of working for yourself!
Here are some great tips from Doostang about negotiating a freelance contract.
1. “Write it down: First and foremost, whenever you negotiate a contract with an employer, be absolutely sure to put all terms down in writing. If you instead opt to commit to something verbally, you run the risk of having an employer change the terms on you, or conveniently remembering them in a different way.
2. Agree to a Price Upfront: When you discuss project details with an employer, it’s important to discuss compensation at the outset. Don’t wait until you’re halfway through the job to bring it up – by that point you might already be too embroiled in the work to easily get out of it if an employer refuses to compensate you properly. And never, under any circumstances, hand over work without first agreeing on the value of your efforts.
3. Set a Date: Negotiate a date on which you will be paid in full – and write this down in the original contract. That way, you hold an employer accountable, and if they fail to hold up their end of the bargain, you can pursue the next necessary course of action. If you don’t set a date, you give the employer the opportunity to continue pushing off payment later and later, which keeps you in a state of limbo and prolongs an already unhealthy business relationship.
4. Procure a Retianer Fee: After you have set a price and a pay date, require that your employer pay you a retainer fee. This is an amount of money that an employer pays you upfront in order to secure your services. Even once you draw up a contract with an employer, you can still run into a tricky situation at the end of your business relationship: your employer may claim that you did not live up to the terms of your end of the bargain, or may lack the finances to pay out to you in the end. A retainer fee ensures that you do see at least some of the money for your work.
5. Understand the Time Commitment: It’s important to have as thorough understanding of the project as possible, at least to a point where you know how much time you will be spending on it. Why? Several reasons. Some people may wish to negotiate pay based on an hourly rate. If you originally underestimate how much time a project will take you, it may be difficult to go back and convince your employer of the time that the work actually took, and of how much you truly deserve to be paid. It’s also imperative to know how much time you need to devote to the project so that you manage your time well. Getting the work in on time is built into your part of the contract, and failure to do so may delay or nullify payment. Finally, understanding time constraints can be helpful so that you can convey this information to the employer.
6. Understand the Project: A nice segue from the discussion on time commitment, you must understand the project you are undertaking, and so should your employer. If you are asked to complete one thing, make sure that this is the thing that you deliver in the end. This will help keep you on track, as well as lessen the likelihood that an employer will claim that you did not provide the work you were supposed to, thus ensuring that you don’t run into unnecessary issues when it comes to getting your paycheck.
What did you do today? Will you be using these tips?
P.S. Thanks again to the Doostand bloggers for these tips!