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Re: client not paying - need advice!

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Re: client not paying - need advice!
by Mike Cohen on Aug 5, 2009 at 5:55:00 pm

There has been a ton of talk here about all the wrong things in a contract, or the wrongness of not having a contract. Now might be a good time to talk about what a good contract should look like.

In many cases, we have a simple one-pager along these lines (simplified for illustrative purposes):

Statement of Work

We will produce video X.

Process and Costs

Video scripting - estimated 30 pages, 30 minutes
$1000

Video shoot at location to be determined. 1 day, 1 camera + audio, lights, etc
$1000

Editing

We will perform initial edit following script. Client to give feedback
$2000

2nd Edit incorporating editing revisions.
$1500

Final edit - including music, 5 original illustrations and final narration
$2500

Approved final edit to be delivered on DVD, h.264 and WMV files.
$500

If editing revisions beyond 2nd edit but before final edit exceed 10 additional hours, client will be billed $395/hour.

Travel and lodging billed separately at cost.

Payment Terms

upon Acceptance - 50%

Upon delivery of DVD master - 50%

Client will own final edited video. Upon final payment according to the terms in this contract, we will, at client's request, provide copies of raw footage and master video on DVCAM tape or AVI file.


____


The above is the simple version. Some larger corporations have a statement of work format that you have to use, including a lot of uses of the words WHEREAS, HERETOFORE and ESTOPPEL.

But most of the non-payment situations discussed on this forum seem to be in need of a simple contract that lays out the payment terms and who owns what.

The moral of the story is, get paid something before you do work, and make sure the customer knows the terms of what they are buying and when they can get it.

Mike Cohen


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