Getting Paid for Work

[Glowball]

This is for web designers -- how do you make sure you get paid for work? I'm asking because I've been in business since 1998 and currently have two clients owing me a total of almost 5 figures.

I've been charging 50% down for sites or work I can quantify from the start, but I am at a loss about what to do for hourly work. I always have Project Estimates that they sign, then contracts to officially hire me that state cost and time frame estimates.

If I think a project may cost $200, say, it's just a guess. I'm wondering if someone hires me for hourly work and I require money down (like a retainer) will I even get the job? If I don't get any work then what's the point?

This last client hired me for something that should have cost about $200, but they revised it so many times that I actually completed the project 4 times. Needless to say the total cost is much more now. I email, I call, they will not return my emails or voicemails.

The other client is simply gone, out of business, I have to let that one go.

How do you all make sure you get paid?

 

[DeZiner]

I have experienced similar, it's always the update work at an hourly rate. I have one client owing me around a grand, minimal to your experience, I call daily, email with notification requests (never do they send a read receipt). I have settled for small claims court (under $2500 in CA). We'll see, once the Post Office get's me a certified letter back with a printed name to go along with the signature I think I'll have something. DeZiner
Never be afraid to try something new.
Remember that amateurs built the Ark.
Professionals built the Titanic

 

[Glowball]

I'm very interested to hear how your situation turns out, DeZiner. I'm really frustrated -- always said I'd stop the extra work when it wasn't fun anymore, and the fun part is getting outweighed by the "working for free" part.

*sigh*

 

[foxdev]

When I create or agree to a contract for hourly work, I always ensure that there is an invoice-and-payment paragraph that clearly specifies how often I will invoice and how long the client has to pay the invoice.

For example:

Contractor will invoice customer for billable work every two weeks. Customer must pay invoices within 15 days of the postmark of the invoice. Invoices not paid within 20 days will accrue a 2% per month charge in addition to the original invoice amount.
-----------------
Robert Bradley
use coupon code "TEKTIPS" for 15% off at:

http://www.lowcostprints.com

http://www.foxdev.com

 

[Glowball]

I can run up a big invoice in two weeks if properly motivated (ha) -- so if you work for two weeks you send them an invoice and don't start work again until the check clears? I've had a big check from a client bounce too, so it's not just a matter of getting it but having it clear their bank.

I like the interest charge, that's a good idea!

 

[foxdev]

I've been fortunate that my clients have been fairly large and solvent, but I have been victim a bankrupt company or two.

On the flip-side, especially for off-site workers where it is difficult to judge accomplishments until they are done, I would be a bit nervous about paying a contractor too much ahead of time, either.

One possible workaround: set up an escrow account. The client puts, say, two to four weeks worth of estimated receivables in the account ahead of time, so that the money is committed. Should you and the client get into a dispute, at least the money is physically with a third-party, and mediation (or a judge) gives you a shot at getting paid. -----------------
Robert Bradley
use coupon code "TEKTIPS" for 15% off at:

http://www.lowcostprints.com

http://www.foxdev.com

 

[Glowball]

Wow, that's also a great idea! Do you know who I would contact about setting something like that up?

Luckily (or not), none of my non-payments are because of disputes and neither client argues that the money is owed. They just won't pay.