Practical aspects of contract, client, costing/pricing

[NULBYTE]

Hi I just want to start by saying I'm a programmer, who can do some graphic design. I'm new to the business side of graphic design, to be perfectly honest.

I appreciate this is a little drawn out but bear with me.

I have read some information on contracts specifically for graphic design freelancers. Namely:
http://koolsplace.com/images/freelance_contracts.pdf
Artist/Client Agreement
http://www.gag.org/res/pdfs/loa.pdf

Please let me know if you approve/disapprove of that info. I thought they were quite good, but I'm not sure how it compares with UK contract law.

I'm just a little stuck on the practical aspect of what works. Obviously with experience freelancers will have contracts well honed.

First a little background on the nature of the job: I was offered contract work instead of a job that applied to (which turned out to be unsuitable and only vaguely related to this) on the basis of some technical skills and creative ability that I have. I didn't do a graphic design degree but I had some graphic design training included. I don’t really know about commercial printers. I have used wide format printers, etc. The nature of the work is not like this. He said he will choose the printer.

It is casual work, so I will be doing other things during the week. What the guy wants is for me to design layout brochures/booklets/flyer/door drops as well as help with is websites (which is not a problem).This is going to be every time he has art shows featuring resident artists. Cautious me is approaching this tentatively and only thinking about the initial thing he wants done.

Basically he showed me three items that he wants up to date versions of by the end of March:

• 3 fold colour brochure, printed on both sides [folded dim. 92x210mm]. That has the basic details of the event, the artists featured, how to get there, etc. I would class the images contained as promotional/atmospheric. It has some location photographs and features some of the artist work for the show but not all.
• A multiple page colour page booklet [pages dim. 105x295mm] Includes a lot more detail about the show and the studio, studio layouts, all the artist featuring an icon of their work, where the art with be displayed, and how to get there.
• A monotone door drop flyer [dim 100x210mm] targeted artist’s studio rentals.

The originals were done by an artist in resident as a freebie.

However he has been somewhat ambiguous as to what he actually wants for the next show. I asked him to write down a remit but he said he doesn’t know how to go about doing it. I take it he wants to give me quite a bit of licence. I’ve experienced this problem in programming it is not usually ideal especially with time constraints, because enviably it is not that way they wanted. He is set on fixed price however. I’m inclined to leave the basic dimensions as is. I think messing around with this could be a minefield as far as getting things done. The existing style is quite basic/minimalist, with hard edged text, no custom/copyrighted fonts, plain colour backgrounds, no gradients, no textures, no blending or fading, and minimal filters on images such as monochrome. Not necessarily a bad thing because it does showcase the art as intended. He said he will supply all the images of artwork and studio shots. I’m inclined to do him an initial quote in this vein. I’m not really sure how to go about costing as it is. So I’m even less sure go about defining all the different things that you could do and them put that in contract speak. Probably best that I offer him additional fixed options that I know I am capable of. Would that be about right? I believe he will the supply core text information but will leave the copy editing up to me.

I am worried about revisions and getting tied up email correspondence (this always happens), what would be advisable for this time of job? How would you define a single ‘revision’ in terms of the client changing things? What about call out fees? I do want to give some gracious period, but to be honest I want to avoid going there and breaking up my day.

How to handle ownership of the rights? There is a lot of content that will be obviously his but I am the designer. I would like to be able to display the design and show it to people.

What about liability on the text content?

Also for security can I give him sketch formats that can’t be printed at a high resolution? I intend to only dispatch the design to direct to the printer’s after I have received payment. Is this the done thing and are there any practical concerns with this?

It there anything else you would suggest?

Thanks for your help in advance.

[Toon]

welcome aboard

[NULBYTE]

Originally Posted by Toon

welcome aboard

Thanks for the pm! I posted in the introductions thread. It includes a little about me.

[thecat]

<< I don’t really know about commercial printers. I have used wide format printers, etc. The nature of the work is not like this. He said he will choose the printer.

Ask for the contact information on his printer. Get with them to see how they want you to set up the job.

Are you familiar with getting print files press ready? If not, you are going to need to alert the printer of this fact as the project might cost your client more. And don’t forget to mention it to your client ...

What I did when starting out was get with a printer and have him go over my files. With me there. That way I learned what to do, and not.

<< What the guy wants is for me to design layout brochures/booklets/flyer/door drops as well as help with is websites (which is not a problem).This is going to be every time he has art shows featuring resident artists. Cautious me is approaching this tentatively and only thinking about the initial thing he wants done.

<< However he has been somewhat ambiguous as to what he actually wants for the next show. I asked him to write down a remit but he said he doesn’t know how to go about doing it. I take it he wants to give me quite a bit of licence.

It’s exactly like a web design client - Sit him down and get a detailed design brief. You can't write a proposal without one. And there is no point taking on a job that's open ended on the client's side.

With the brief in hand, put together a project proposal detailing everything he’s asked you to do. Get him to agree on your terms. Adjust any you agree to compromise on.

If you need forms to help crack open his brain, Creative Latitude has a bunch of downloads you can grab.

So does Business of Design online.

I have similar on my old site.

Feel free to take the forms you need, edit, add your logo, whatever.
<< He is set on fixed price however.

Make sure you put this price into the proposal, detailing exactly what it covers on each project.

Then, put disclaimers on project creep. Make sure you tie this down tight or just like in web, you’ll be working for free.

Agree on so many changes per item. Anything over, and you charge X amount per hour.

If you are uncertain on how to write a proposal, Nigel has an article on Creative Latitude. It might be a bit much for what you need but it won't hurt to read it.

<< He said he will supply all the images of artwork and studio shots. I’m inclined to do him an initial quote in this vein. I’m not really sure how to go about costing as it is. So I’m even less sure go about defining all the different things that you could do and them put that in contract speak. Probably best that I offer him additional fixed options that I know I am capable of. Would that be about right? I believe he will the supply core text information but will leave the copy editing up to me.

What about the fixed price he mentioned?

But really, you are going to have to sit down with him and get it all in writing. He's running a business. He knows (or should know) that you can't agree to work for him without clear direction of the scope of the project.

<< I am worried about revisions and getting tied up email correspondence (this always happens), what would be advisable for this time of job? How would you define a single ‘revision’ in terms of the client changing things?

Three strikes and he’s out ... this is how I work ...

Talk to the client, get the design brief, sketch out bits at the meeting, get their direction (all is either via phone, email, or in person).

Strike one: Create the agreed designs (I give three sample). Present to client. Make note of preferred design. Make note of any requested changes.

Strike two: With new design in hand, present to client for approval. Make note of changes.

Strike three: Present to client for approval. This should be pretty much a signoff to go to press. Make sure you get him to sign off on everything. Copy, colour, design, all. (there are handy forms just for this)

And of course, you are going to have to decide if you walk it to press, or he does. If he does, then he is responsible from this point on. If you are, them you are going to have to have him sign off on the press proof.

<< What about call out fees? I do want to give some gracious period, but to be honest I want to avoid going there and breaking up my day.

State from the beginning how many meetings per monthly project your agreed quote covers.

If it were me, I'd state the preference to handle most everything via email, phone, and online. Tell him that it saves HIM wasted time in meetings as well.

<< How to handle ownership of the rights? There is a lot of content that will be obviously his but I am the designer. I would like to be able to display the design and show it to people.

Put a clause in your contract that you have the right to use all work in your portfolio.

<< What about liability on the text content?

Do you mean copywriting? Or typos? You need to get this sorted too. But bottom line, he’s responsible for signing off on typos.

If copywriting is included, be sure to add that in your quote. So many revisions, etc. Just like in design.

<< Also for security can I give him sketch formats that can’t be printed at a high resolution? I intend to only dispatch the design to direct to the printer’s after I have received payment. Is this the done thing and are there any practical concerns with this?

Well, first off, if you do it online or via email or printed out, it's all going to be low res.

And second, if you don't trust him you are going to find out right away so it's a moot point.

Also ... Figure out what the project entails. Break it into thirds. A third down before commencing. A third down before changes. A third down before going to press. Finish. Money in the bank, so no need to worry about him running off with your designs really.

<< It there anything else you would suggest?

Go to Creative Business Online or amazon.com and buy one of Cameron’s books on running a design business. They are all gold. For starters, download some of his free forms.

Make sure you have a kill fee in your contract. Always. That way, if you part ways, you get paid.

Make sure you explain that a change of design direction means a new project. New project means you start from square one on billing.

Suggestion: If you can get him to agree when/what/how much/etc, and if you find he's great to work with, then you can put him on retainer. But, only good clients get on retainers so try him out first.

I hope this was a bit of help. There were a couple of questions that were a bit grey so I took a stab so could be miles off.

[thecat]

<< I'm new to the business side of graphic design, to be perfectly honest.

Depend on how new to business, but I just thought of something ...

Since you are in the UK, you have some brilliant programs at your disposal.

When I started a GD company in Scotland, I went to the bank to open a business account. They would do it, but I had to fill out the requirements first - a business plan. They sent me to the Small Business Gateway for assistance.

Pretty much everything business start up is taught there. Dirt cheap. You can also network and pick up new clients.

I'm sure wherever you are in the UK, you'll find the same. It's there you can ask advice on the legal bits of what you are embarking on. Because they do differ from the US. Enough to sting come tax time (if you make a ton your first year).

[NULBYTE]

First of all thanks very much this has been really helpful.

Originally Posted by thecat

Ask for the contact information on his printer. Get with them to see how they want you to set up the job.

I will. I know the printer that he used for the last job. It is just down the road from him.

Originally Posted by thecat

Are you familiar with getting print files press ready?

I though these were fairly informative:
http://www.reallifetraining.net/pdfs/Press_sht.pdf
Commercial Press, Inc. - Getting files, fonts, graphics, disks ready for commercial printing
JEP: Digital Workflow: Managing the Process

The client already knows I haven’t used a commercial press before.

Originally Posted by thecat

What I did when starting out was get with a printer and have him go over my files. With me there. That way I learned what to do, and not.

I'm going to ask them what to expect, what file formats they support.

Originally Posted by thecat

If you need forms to help crack open his brain…

Thanks for those resources.

I have already asked him some of those questions and will do more.

Originally Posted by thecat

Make sure you put this price into the proposal, detailing exactly what it covers on each project.


Then, put disclaimers on project creep. Make sure you tie this down tight or just like in web, you’ll be working for free.

Sure. What I have in my proposal/contract template is a SCOPE OF WORK box this is bellow PROJECT ITEMS and below SCOPE OF WORK is BILLABLE WORK. The last line of which will include 'Any concept/design requirements not specified under SCOPE OF WORK'. Then in the terms and conditions is outline the billable work and expenses.

Originally Posted by thecat

Agree on so many changes per item. Anything over, and you charge X amount per hour.

I've said 10 hours for everything. As I didn't know how to define changes in legalese I did revision hours. This may have not be not so smart, I don't know. How they use the 10 hours is up to them. Then I charge by the hour.

Originally Posted by thecat

If you are uncertain on how to write a proposal, Nigel has an article on Creative Latitude. It might be a bit much for what you need but it won't hurt to read it.

Thanks I used a couple of good examples.

Originally Posted by thecat

What about the fixed price he mentioned?

He didn't mention a price he just wanted a fixed price job. I'm essentially going to do it like this: I can work out a price for the brochure and the flyer. The catalogue depends on the number of pages he wants. So if he is set on a certain number of pages to start with I will quote for that (it actually mainly depends on the number of artists that are participating in the show), then it is x amount per additional page. The quote is just for what is in the scope of work.

Originally Posted by thecat

Three strikes and he’s out ... this is how I work ...

Crap I might have been a bit premature in an email about giving 10 hours of revisions. I suppose I can still have the 10 hour but make sure I have these well defined stages.

I already have stages in the WORK PLAN section of the contract.

Originally Posted by thecat

And of course, you are going to have to decide if you walk it to press, or he does. If he does, then he is responsible from this point on. If you are, them you are going to have to have him sign off on the press proof.

I did initially say I would send it to the press, but actually this is probably going to make things more complicated than they need be. Besides he would have paid me the deposit and 50% of the remaining fee plus billable work up until this point excluding other expenses. He then has to pay the remaining within 15 days with a 2% monthly service charge for any late payments.

State from the beginning how many meetings per monthly project your agreed quote covers.

I think one in person meeting is enough for this project.

Originally Posted by thecat

If it were me, I'd state the preference to handle most everything via email, phone, and online. Tell him that it saves HIM wasted time in meetings as well.

Exactly!

Originally Posted by thecat

Put a clause in your contract that you have the right to use all work in your portfolio.

Done. I get five of each published item. He has the right to publish in the UK for a year and electronic right for the purposes of printing. All other rights to be negotiated.

Originally Posted by thecat

Do you mean copywriting? Or typos? You need to get this sorted too. But bottom line, he’s responsible for signing off on typos.

Done. He is responsible for proof reading.

Originally Posted by thecat

If copywriting is included, be sure to add that in your quote. So many revisions, etc. Just like in design.

I need to separate that from the design revisions.

Originally Posted by thecat

Well, first off, if you do it online or via email or printed out, it's all going to be low res.

Sure, I just thought I would put in the contract exactly what sketches are available.

Originally Posted by thecat

Also ... Figure out what the project entails. Break it into thirds. A third down before commencing. A third down before changes. A third down before going to press. Finish. Money in the bank, so no need to worry about him running off with your designs really.

I've pretty much done that.

Originally Posted by thecat

Go to Creative Business Online or amazon.com and buy one of Cameron’s books on running a design business. They are all gold. For starters, download some of his free forms.

Cool thanks.

Originally Posted by thecat

Make sure you have a kill fee in your contract. Always. That way, if you part ways, you get paid.

Done

Originally Posted by thecat

Make sure you explain that a change of design direction means a new project. New project means you start from square one on billing.

I'm only focussed on this job anyway. New project new contract. Billable work in the existing contract has Work Change Orders (WCOs). That has him approve the changes and the cost implications and how it affects the time.

Originally Posted by thecat

Suggestion: If you can get him to agree when/what/how much/etc, and if you find he's great to work with, then you can put him on retainer. But, only good clients get on retainers so try him out first.

Surely it is him who pays me a retainer?

Originally Posted by thecat

I hope this was a bit of help. There were a couple of questions that were a bit grey so I took a stab so could be miles off.

Nope, really helpful thanks.

[NULBYTE]

Originally Posted by thecat

<< I'm new to the business side of graphic design, to be perfectly honest.

Depend on how new to business, but I just thought of something ...

Since you are in the UK, you have some brilliant programs at your disposal.

We I did an enterprise scheme for free and got free business counciling. I think it has just expired. Only for under thirties in my area of London.

[thecat]

<< Crap I might have been a bit premature in an email about giving 10 hours of revisions. I suppose I can still have the 10 hour but make sure I have these well defined stages.

What I find is that the longer I work with a good client, the less revisions are made.

With long term clients, I've had many designs go through on the first round (catching just the odd typo). One would get nervous if I even suggested a tweak when showing the preliminary designs.

So really, I wouldn't advise putting an hour limit on it in the future. Just 'allowable' revisions, or he might feel he's getting short changed and start adding things that'll make your life miserable.

EDITED TO SAY: this of course depends on the scope of the project ... it all does ...

Pre press resources - I did a series on Working with Printers last year. You can see it in the top of the Designers Working With index.

I interviewed printers all over the world with the question, “How can a designer improve their skills in your industry?”, and the answers are quite handy for those coming in new.

Derald's A Basic Guide to Printing & Having a Successful Press Check is also an informative read.

But, if you are coming in fresh, there is no book or article that's going to give you everything you need to know about pre press at the time you need it.

So you really should have the printer look over your files before you say 'I do'. Or it could cost.

And printers are quite happy to share their knowledge. Actually, they wished most designers coming up would spend some time getting advice.

<< He didn't mention a price he just wanted a fixed price job. I'm essentially going to do it like this: I can work out a price for the brochure and the flyer. The catalogue depends on the number of pages he wants. So if he is set on a certain number of pages to start with I will quote for that (it actually mainly depends on the number of artists that are participating in the show), then it is x amount per additional page. The quote is just for what is in the scope of work.

Ah, makes sense. It's what my contracts cover. And then they start adding bits. First you have the base project, then you have the added cha ching.

Quote:
Originally Posted by thecat
Make sure you explain that a change of design direction means a new project. New project means you start from square one on billing.

<< I'm only focussed on this job anyway. New project new contract. Billable work in the existing contract has Work Change Orders (WCOs). That has him approve the changes and the cost implications and how it affects the time.

Agreed, a change in creative direction mid-stream is something that needs to be tied down. And not just in writing. Communication face to face of via phone before starting is important. Boy, do I know that one, as I'm sure you do.

You give him three designs from the creative brief. He picks one and gives further instruction (more copy, different photos, different colour or fonts, etc). You redesign the chosen item to suite (adding, subtracting, pushing around elements). He checks, makes a few tweaks ... goes to lunch while you are tweaking ... comes back ... gives you a call saying that he met up with his wife's younger sister's girlfriend at the local pub and well, she was thinking something different like ...so now he doesn't want the design to be created around paddling ducks in a spring pond with blue feathers hanging down. He wants a car theme ... in lavender ... with models taken by that photographer whats-his-name out in Wales.

Change of direction at this stage equals a new project. I'm surprised at how many clients don't realise this. They keep believing that ad "have it your way" always. Doesn't happen.

<< Surely it is him who pays me a retainer?

Darn, my bad. I forgot you all were way above the equator. You see, once you start coming down my direction, everything flips backwards and upside down.

:-D

<< We I did an enterprise scheme for free and got free business counciling. I think it has just expired. Only for under thirties in my area of London.

Pity. The UK system is handy for new business startups. All those entry level courses. All that networking with other new startups. With no money. Never mind ...