Contract Kill Fees
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- seed
Do you have a kill fee in your contract? I just had a contract canceled within less than a week of signing.
- madirish0
yes, 50% of estimated, agreed to budget.
- emecks0
I read "contract killer fee"
dunno why I'm even writing anything,
you ain't seen me, right?
- seed0
I usually state that its 25% on top of the number of hours already worked at the mentioned rate. I lost my old contract with my hard drive and didn't have the fee in there this time. I only mentioned charging for the hours. I was actually trying to be nice and keep it simple for him since he was a young guy I knew. I didn't expect him to cancel it 4 days later.
I think I learned my lesson. This is a pain.
- e-pill0
Graphic Artist Guild
http://www.gag.org/contracts/arc…
- OSFA0
since we are talking about contracts, is it worth it to have a template universal one checked and 'sizzled up' by a lawyer? Who's done that?
- emecks0
Graphic Artist Guild
www.gag.org/contracts/...e-pill
(Jun 14 07, 07:10)damn, I need specs (and help) I just read "gagging order" there.
ffs.
- madirish0
yes OSFA
- madirish0
ffs emecks- GET AHOLD OF YOURSELF!!
:)
- seed0
Those definitions are different than what I was thinking of I guess. That is interesting to charge a fee if the work isn't used. Even if you got paid in full anyway? I'm just talking about them canceling the contract midway.
- emecks0
ffs emecks- GET AHOLD OF YOURSELF!!
madirish
(Jun 14 07, 07:13)Now see I really wish you hadn't said that, the marketing chick is looking disgustedly at me :/
- seed0
Related question. When you are doing a project do you consider the time you spent creating and refining the requirements as hours spent?
Since I have been doing only flat rates I spend a ton of time refining requirements before even getting a contract signed. Basically then I have told them the best way to design and develop the entire project down to the detail and given them an IA outline. Any advice on this?
- MrD0
seed
1. early termination should be with in your binding contract
2. if it is not in your contract, you should contact the client and neg a settlement for work that you have done up to now and other retaining fee (say, you cleared your schedule for this project and by not taking other client, you have lost money)
3. 50% is not unusual but if it is a large project it might be high.
4. any time you have been thinking about the client and its project counts as time you spent.
5. you should consider looking in to day rate rather than flat rate.
6. I would charge ANY time you have spent on pre contract.
7. doing actual design should not be only part that get paid. it should also include research and other prep time.
- madirish0
first part:
No, is the short answer. the real answer is that i would suggest bumping your estimates across all parts of the budget to accomodate for a good percentage of these hours; insomuch they do not get bloated or have questions raised too much. ;)#2:
Wow. well, that is the nature and bitch of flat-rate work. but, in all honestly, this is the very reason why kill-fees are so critical to include in the contract. unless they are paying for true Discovery and an artifact (Statement of Work/Project Outline) that results from this, you want to be cobvered if this does happen (aka- hit by bus model). It is best to nclude this as then both sides have a vested interest in goign forth and not pulling out early for seeing greener pastures. yours is good faith effort through sweat endured, theirs is the money they will loose if they wan to walk.
- seed0
MrD, we are talking about it at work. The guys I work with are saying that any work done before the contract was signed was my marketing cost and cannot be counted as time spent. I still feel like it is justified to count the time especially since he has a detailed IA/requirements document. He should not have wasted my time at all if he knew this was a possibility. Which he claims is because he needs the money.
- MrD0
"detailed IA/requirements document."
that is not a marketing cost
that should be included in a bill
marketing cost would for u to comp up with a high level concept
- seed0
I may just need a new approach to how I do contract. I usually spend a good amount of time detailing exactly what will be done and for what amount. They are then left with a detailed IA/requirements document before a contract is even signed.
In this case we had a verbal agreement that we would be signing a contract for an estimated price we had just didn't have time to get together for a few more days. I refined the specs more during that time which was sent along with the official proposal doc.
I even wasted 1.5 hours on Sunday meeting with him and going over it.
- MrD0
yes you should do high level than do the detail work after you have sold and signed contract
always put in 50% of work paid if 50 or less than, work is created. if over 50% of work has been done, it should be 100% paid
- seed0
Anyone have links on the benefits of day rates?
- seed0
In this case I think it is at least fair to charge from the time we verbally agreed to sign a contract and that I would refine the specs more.
- MrD0
usually day rates are about 10-15% cheaper than hourly
say you charge 100 p/hr your day rate would be 700
flat rate is always good if you got volume and if there is no need for 'thinking' or 'prep' say like production work.