Hi Schell,

  First off I want to say that yes, many people are seriously burned by
clients. Often even when there is a contract in place. 

  I have experience as both an individual freelancer as well as a consulting
company and have found that there is almost always a dance between up front
money, contract strength, and trust/reputation. 

  When I was starting out as a freelancer without much experience, I would
often take jobs without a contract and without any money up front. I would
basically handshake on an amount and basic description of the project, do
the entire project and then after delivering the goods (source code, and
running site or app) ask to be paid. That method sucked, and over time I
realized that it was a bad way to do things. Perhaps when first starting out
it was okay, because I was young and didn't have any references, or
experience, but there is really no excuse (as a professional) for not
signing at least a basic contract (which you can find online, or request
from me and I'll happily send you an example). 

  After I had been freelancing for a while the issue wasn't contract or no
contract, it was money up front, payment scheduling, etc. I think someone
responded by saying 75% up front - that would be great - I feel like you
need to be someone highly desirable and be working on a well scoped and
clearly budgeted project to get that. I generally try to use a 1/3, 1/3, 1/3
model for projects with a clear time frame and deliverable. 1/3 of the money
due on contract signing, 1/3 at the half way point when there is a demo of
the deliverable, and a final 1/3 at project completion (when the source code
is handed over). On open time frame or time and materials contracts I send
an invoice every two weeks and stop work if payment is not received after 45
days (and I send notices after 30 days).

  Source code, and rights to materials generated during the project is a
tough subject. Generally contracts with corporations specify that the corp
owns all the materials, notes, ideas, code, etc. related to the project they
are paying you for. Generally private individuals either don't specify, just
want the deliverable, or are open to dual ownership with an agreement that
you won't use the deliverable, but just the notes, ideas, piecemeal code
generated during the project - still, this should be spelled out in the
contract.

  Finally, in order to break into larger projects and have some liability
and legal protection I created a Cali Closed Corp (cost around 1200 for the
whole process) and now do business corp to corp. In this model there are
always contracts, and often retainers, and the back and forward is mainly
about which corp the contract favors, and how strongly it favors them. In
relation to source code and project materials, the way that I try to run it
(and get in the contract) is that anything project related is owned by the
client corp (and turned over in any format requested), after a client job is
completed the code and projects materials are 'cleaned' and anything of
value is stripped of project specific details and saved for later use. My
company (Asparagus Corporation Inc.) is trying to maintain this methodology
by using Virtual Server's for each client project, so if a developer is
working for Corp A, then they start by setting up an entire OS Dev Env (by
taking a template off the shelf so to speak) and then do all the client work
on that. When the project is done that Virtual Machine can be destroyed (but
any new software, setup, improvements to the temple are kept and added into
the main repository of dev workstations/servers). There is value, for
example, in the configuration of various LAMP/WAMP/Other stacks and dev
software (My Eclipse, databases, editors, plugins, etc), but the client corp
doesn't care to keep the value in the configuration, they only care about
the value in the deliverable (generally), so there is a clear division of
interest and ownership.

  Ok, sorry if I went overboard Schell, to answer your question quickly (at
the end of a long email), I think that you should turn over the working
version of what you did (so the client knows it is done), but not the source
code until you are paid. You should try to get a contract signed for the job
(or at least a statement of work, or Letter of Intent, or Memorandum of
Understanding) saying that you did X for Y and both parties were happy (once
you are paid). Next time get a contract, look into incorporating your own
company so that you can have some liability protection, heck, email me at
Asparagus Corp if you are interested in joining a Dev Company.

Gabriel DeWitt
[EMAIL PROTECTED]
Sebastopol, CA

----------------------

Message: 2
Date: Wed, 28 May 2008 14:42:41 -0700
From: Schell <[EMAIL PROTECTED]>
Subject: [osflash] Commercial Work
To: "Open Source Flash Mailing List" <[email protected]>
Message-ID:
        <[EMAIL PROTECTED]>
Content-Type: text/plain; charset="iso-8859-1"

I'm having a little issue with a client. They hired me for a web application
and have not yet paid, but want the source code to integrate it with one of
their online shops. What kind of copyright, license, etc. do you guys use in
these situations, or, what is your policy on dealing with clients [ do you
give them source code, compiled executables, both? Do you make contracts or
work with an honor system?] Has anyone been seriously burned by a client
stealing code or not paying? Thanks in advance.

-- 
Schell Scivally
600 Santa Rosa Ave.
Santa Rosa, CA
95404
[EMAIL PROTECTED]
http://blog.efnx.com
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