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Redrafting my contract. Finally.
What do you recommend for the following details?
– Client delay: how long before a client response or material is considered late, and what interest or fees to introduce?
– Late payment: how long until this triggers, and at what interest percentage?
Client Delay: at the beginning of each project, put in place a production schedule of work that will show how delays will cause production to slow. Then explain that time has been allocated for that project and any delay with completion is subject to an agreed overtime charge. We tend to explain this and then gauge what fees are usually incurred. Depending on how much of a delay and then how much work is required to complete that project. Might be text edits Vs a complete new design.
Late payment: charge 5% interest on each day non-payment is expired without settlement.
Client delay: 30 days. Bill pro rata for work done. Client gets no rights to work done. 15% startup fee to resume project.
Late Payment: Net 30. 10%.
Here's the copy from my agreement.
Either party may terminate this Agreement by giving thirty days written notice to the other of such termination. In the event that Work is terminated at the request of CLIENT or the project is delayed for longer than thirty days by CLIENT, CONSULTANT shall have the right to bill pro rata for work completed through the date of that request, while reserving all rights under this Agreement. If additional payment is due, this shall be payable within thirty days of CLIENT’s written notification to stop work or CONSULTANT’s notice of stalled project. In the event of termination, CLIENT shall also pay any expenses incurred by CONSULTANT and CONSULTANT shall own all rights to the Work. CLIENT shall assume responsibility for all collection of legal fees necessitated by default in payment. CLIENT agrees that the fee for re-opening a closed project is an additional 15% of the total project price (which is due in full prior to re-opening of the project along with any outstanding payment).