Contract Work

Rson

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Join Date
Jun 2017
Location
Michigan
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517
Ok, so I thought I should start my own thread instead of thread-jacking the other.

I have an interested party that wants me to do some contract work and I have an LLC all set up. I'm waiting on an insurance quote at the moment.

I'm working on setting up some kind of contract paperwork. Does anyone have an example contract they use that they would be willing to pm me?

Maybe I'm too hung up on having a contract, but I'd like to have something in writing and not just a nudge and a wink. From what I've heard, getting paid can be the hardest part.
 
Maybe I'm too hung up on having a contract, but I'd like to have something in writing and not just a nudge and a wink. From what I've heard, getting paid can be the hardest part.

Yes you are that said a PO (purchase order) is a contract so you dont really need a "Contact" but you need them to issue you a PO

Here is some good reading material http://www.plctalk.net/qanda/showthread.php?t=60769

I do my best to not take PO's but if they are local and you could drive down and knock on the door in 30 days, I would not have a issue taking one.

Make sure you have the AP email and phone number before you take the job, they are the ones that pay and whom you need to talk to.
 
You should first get your LLC included on the list of your client's approved vendors. The bigger the client, the more hoops they will make you jump through before approving you for the list. You need to know the person in the purchasing department who will issue the PO in addition to your contacts on the technical side of things.

Your contract is the purchase order. Don't do any work without first getting one. The wording on the PO could be as simple as "XXX hours of automation programming during the month of December 2019 at the direction of YYY". The PO will include payment terms as well as the dollar amount.

It can obviously get a lot more complicated than that, especially when you will be delivering physical things like controls enclosures or if you will require the services of the client's trades to complete your work. Keep it as simple as possible but no simpler than necessary.
 
Ok, so I thought I should start my own thread instead of thread-jacking the other.

I have an interested party that wants me to do some contract work and I have an LLC all set up. I'm waiting on an insurance quote at the moment.

I'm working on setting up some kind of contract paperwork. Does anyone have an example contract they use that they would be willing to pm me?

Maybe I'm too hung up on having a contract, but I'd like to have something in writing and not just a nudge and a wink. From what I've heard, getting paid can be the hardest part.

Provide the customer with a quotation describing the work, the price, and the terms. Put a unique quote number on it. Their purchase order to you should call out your quotation number. If ever the quotation is updated, make sure the new one is unique (adding a suffix works). When its all said and done, you'll always be at risk of not getting paid and depending on the size of the purchase order, you'll decide on legal action. In this town, getting paid in 60 days is normal even if the PO says 30. Just bury some extra money in there for interest.

Since 2001, I've only gotten burned once and the customer was ABB in Auburn Hills. I recouped some of the money when the end customer wanted support.
 
I usually just do hard quotes that explain it all and the PO has to reflect this.


Other option on occasions is a T&M sheet that they have to approve in advance, but doesn't necessarily need a PO in advance.


They both work...
 
Many of the large companies I deal with, pay on the 1st of the month after 60 days, so it can almost be 90. Small guys typically charge extra for the delayed payment, the plant people know this, and overlook the up charge. If you build panels and such, include milestone payments in your quote.
 
Many of the large companies I deal with, pay on the 1st of the month after 60 days, so it can almost be 90. Small guys typically charge extra for the delayed payment, the plant people know this, and overlook the up charge. If you build panels and such, include milestone payments in your quote.


Yep, I add charges based on who it is.
 
a few things to think about
are you planning on doing this as a side job or going full time out the door.
if it's a side job how dos your boss feel about ?
do you have you own software licenses or are you going to use your employers
if you use anything from you full time job you boss would be entitled to a share of the job.
there are so many thing to consider when working side jobs
you need to make sure that you keep you side work separate from you regular work with no conflicts or you could be lose both jobs.

as for PO's they are just a paper trail for a request for work or materials
make sure that the person that gives you the PO has the authority to do
I have gotten hit a few times on that, a rush job I get the PO in hand but when I billed it the company cam back with the PO is invalid over 6 months to finely get paid
and always get a copy of the actual PO not just a number
if you want to do a contract get with a local attorney in your area and just pay his fee then you will be in a better position to enforce it if something goes wrong
no matter what your relationship is with the person you are dealing with his boss may have other ideas hang you both out but your the one that doesn't get paid in the end
I could tell you nightmares on all the promise's jus bail me out this time and you will get all my future work they don't even take my calls after the job id finished.
it list goes on and on
if you do go out on your own I wish you the best
 
Instead of thinking in terms of a 'contract' make a list of agreed upon 'terms and conditions'

Don't get carried away, but access to worksite, work hours, helpers as needed, area clear of clutter, yours and theirs responsibilities, persons you report to or take direction from, ...

The list will change as you get more experience and come across unusual clients and demands.
 
Once you get a good relationship with your customers its a lot easier to do T&M and once a month bill them for service done, still keep a book and have them sign it before you leave so the hours are verified, so I guess this brings on the question of what type of work/services are you going to do? Machine/panel building, troubleshooting, general upgrades/services they all will need to be approached differently the only quotes I do is when I sell them a product other than that its a hourly rate
 
All the posters above will tell you that jobs/contracts never go to plan.
At the start, everything is carved in stone and clear.
During, people change their minds, unforseen delays happen and they swear they mentioned something they didnt.
Flexibility but awareness is key.
You can soon end up working for free.
 
Many companies use a "service call" sheet. You list a brief description of the work done, hours consumed, etc...
" 4 hours troubleshooting and correcting alignment of acme widgets on line 4"
plus two hours travel time.
Have the company guy sign it, it does not guarantee payment, but it does give you a defensible position.

We have some clients that never complain, only want you there when they need you, and glad you are available.
Others complain about every dime and nickel, question all hours and are never happy.
 
Thanks for all of the thoughts/advice.

I will be working for a couple of companies I used to work for, so I know them and what I am getting myself into fairly well. I will own my own software licenses (I already have most that I need) and will be teaching in the evenings while doing the contract work.

Does anyone charge differently when it comes to travel / on site time? For instance, If I have to travel 4 hours to site and stay overnight, work for two days and travel back 4 hours, how would you bill that time? Do you just bill it as another hour of your time, by miles, etc?
 

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