1. As the service provider, it is your responsibility to research the normal and usual rates for services that you provide and to include your individual value related to years of experience, educational degrees, certifications, continuing education, and awards. Be sure to include reimbursement fees for the non-face-to-face, “invisible” work that is involved in providing the service and product you are selling, such as materials, continuing education, business overhead, phone calls, on-going project consulting and management of sub-contractors.

2. Be specific about the terms of payment (i.e., full or partial pre-payment, by when full payment is required, charges for changes made to the contract, interest added to bill if not paid on time). Be clear about whether the costs are projected and thus, alterable based on situation or negotiations or whether they are complete, regardless of circumstances

If you are a professional such as an attorney or accountant that charges for every minute that you work on behalf of the client, state the hourly fee and a proposed range of cost for the completed project. Keep accurate records of the exact time that you spend on the client’s project to verify the charges. Remind the client of the time you are spending on the phone, writing letters, etc. to minimize the “surprise element” later about charges.

If you are not an hourly professional, the financial charges may be specifically related to face-to-face time and include the “invisible” time in that charge. You may also choose to give a range of costs for projects that will include normal and usual costs and time based on past performance. In these cases, there will be some times that you will be ahead of the game and sometimes not.

3. If the client has given you a budget limit, hear that and respond respectfully. Do not assume that you can expand the budget once the project has begun. There may be unexpected circumstances that require re-negotiation but that should seldom.

4. What are the consequences if the project is not completed on-time, on-budget? Identify what circumstances will be acceptable or not for re-negotiating the completion time or projected budget. Do remember that if the promise of completion cannot be kept, communicate to the client as soon as re-negotiating is necessary. Communication and re-negotiation is imperative. Making a decision in isolation by either the client or the provider is unacceptable and in poor business practice.

5. Clarify who will pay for what in the project, (i.e., who will provide supplies, special equipment, space for consultation, support services, etc. )

6. Identify the timing of project reports which will include both the status of the project and financial expenditures to date.

7. Gain a reputation for on-time and on-budget project completions and for communicating along the history of the project. Your reputation will precede you and open many doors.

Watch for the next blog on Terms for Contract Cancelation.