Monday, January 4, 2010

Structuring an Off-Site Work Agreement

The biggest concern I’ve heard regarding the use of off-site resources is the fear that you, the client, will get overcharged for the work. There’s a very simple way to handle this that completely protects you. Simply use a fixed rate contract. Treat each request as a fixed bid. Here are the steps:


  1. Establish a contract between yourself and the developer.
  • Specify monetary rate to be paid.
  • Make this contract a short duration contract, say three months. Once you have a good working relationship with the developer you can increase the length of the contract if you choose.
  • State in the contract that all work is to be returned in a satisfactory form (and what constitutes satisfactory).
  • Write into the contract that if any rework is necessary because of developer error then the developer will absorb the time without cost to you, the client.

  1. When there is work to be done you estimate the number of hours it will take to do the work.

  1. The developer looks at the work and agrees to the estimate.

  1. The developer performs the required task and returns the finished product.

  1. Once the client confirms that the finished product meets the requirements the developer is paid for the number of hours that were estimated. This gives the developer an incentive to do the work quickly and correctly.

Never create an off-site work agreement that is open ended. Always make sure that you are protected. If you follow the suggestions above your off-site development experiences will be positive.

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