> .         I haven't heard of this being done but another option for bigger
> jobs could be to have the payment transferred to a third party in trust so
> that it is confirmed that the money will be there when payment is required
> be that a lump sum or progress payments subject to the client releasing it.
>

There are thousands of IT clients and developers using this all round
the globe via telecommute.  This is called an escrow service and the
service provider charges around 10% for their service.  Some of the
sites include:

escrow.com
odesk.com
elance.com

and dozens more.  While there is a certain element of safety, most of
the clients screw the developers for what they can get.  I've bidded
on a number of jobs but each time the attitude of the clients put me
off and I withdrew each time.  It wasn't too great being able to view
the history of some of the clients either.  That really put me off.

In the end I decided that if I can't negotiate with the clients
sufficiently to determine if they are genuine then I may as well work
for someone else.  If you deliver consistently good work then you'll
attract good clients and not have a problem.  If you start to get
shirty the moment someone hesitates about paying, or you have all
these restrictive payment clauses then you'll put off the genuinely
honest clients who don't dig all the bureaucracy and legalize that you
put in their way.  Ultimately you can't guarantee anything.
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