[NTLUG:Discuss] FW: motivating shady clients to payup

[Greg Edwards]

I've read all the response to this and I'm really sorry to say that I'm 
real disappointed in both the original post and the support given to 
this plan!!!

Sorry Madhat for extending this but I can't just let it go.

I'm a contractor by profession and what Jeremy has suggested is way out 
of line.  If you have doubts about getting paid then make sure your 
contract has provisions in it to insure you get paid.  You don't leave 
viruses or bombs in your software.  That is NOT professional!!  There 
are many ways to resolve your concerns that show a professional approach 
to doing business.

If this is a fixed bid job simply write a statement of work that lays 
out the project as a set of deliverables for which an invoice is 
generated for each item.  Put an up front percentage invoiced at 
signing.  The size of this is generally dictated by the size of the 
overall project and 15% to 20% is not out of line.  On the flip side you 
leave a percentage as paid on final delivery and acceptance, 10% is a 
fair number here.  In your contract the final deliverable should include 
all source and documentation as well as transfer of all copyrights and 
ownership of the software/hardware/etc.  Spread the remaining amounts 
over the deliverable items in the project but none of the source, 
copyrights, or ownership transfers with these items.  This method only 
leaves you with 10% to 15% at risk, depending on the number and time 
spread of deliverable items.

If this is a time & materials (hourly) contract then you don't have to 
be so paranoid.  Make your invoices net/15 (if possible) and stop the 
work if they miss an invoice.  Getting net/15 is usually not easy with 
big companies (usually 30-60) but smaller ones can, and often do agree 
to it.

As an industry we (contractors) have enough problems with the IRS and 
our friends in Washington that we don't need other contractors making 
things worse.  Those ya-hoos that went after Microsoft for benefits did 
more damage to the rest of us than the current economy ever thought of 
doing.  Then there's the people that do shoddy work so all contractors 
get labeled by those clients.  And then there are those that want to do 
things like putting in poison pill bombs!!!!  Your not the first to come 
up with this idea!

If you don't think you'll get paid don't do the job!  If you take the 
job do it right and do the best job you can possibly do.  Don't ever 
tell a client to their face that you don't trust them.  If your not sure 
check them out ahead of time by checking with other contractors, the 
BBB, TWC, or agencies.  More than likely someone in the area has worked 
with them before.

If a contractor came to me on a project that I was managing with your 
proposal I'd personally toss them out the 3rd floor window.  And if a 
contractor ever put a bomb in the software I'd sue them for every penny 
they had, or ever thought of having.  Guess what, I'd win in a walk!! 
My E&O insurance rates are outrageous because of people pulling stunts 
just like this!!

OK, I'll get off my rage box with a final comment.  Don't do this 
because you'll either lose the project or you'll end up in court without 
a snowballs chance in hell of saving your bacon or house.

jeremyb at univista.com wrote:

>  
> 
> -----Original Message-----
> From: jeremyb at univista.com
> To: dicuss at ntlug.org; linux at ctlug.org
> Sent: 8/26/02 9:43 PM
> Subject: motivating shady clients to payup
> 
> hi all,
>    I've got a gig that has me doing some rather interesting work for
> some
> rather unsavory types...



> All of this will be disclosed to the client.  I'd like input from you
> all
> regarding this plan....  
> 
> -Jeremy
> 


-- 
Greg Edwards
New Age Software, Inc.
http://www.nas-inet.com