Outsorcing – 10 Tips For Reaching Agreements

This post was written by Internet Marketing John on December 27, 2011
Posted Under: Outsourcing

Reaching agreements that are mutually beneficial to both parties is what successful outsourcing is all about.

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One of the most important elements of subcontracting is that you and the subcontractor are talking on the same plain about the same subject.

In order for a smooth relationship to transpire, there should never be any last minute surprises or misunderstandings about the original intent of the agreement.

Reaching agreements that promote a smooth working relationship can be more easily facilitated by implementing the following 10 tips.

  • The first and most important tip is to make a contract.

A well written contract is binding to both parties and is the most important thing you need to do to eliminate misunderstandings.

  • Make sure both parties agree up front on the amount and terms of payment.

Spell out exactly what is required and for what price.  If any discounts apply for early completion of the job, make sure they are spelled out in the contract.

  • Make it perfectly clear when you plan to pay the subcontractor and what method you plan to use.

Make sure the subcontractor is able to accept your credit card if you plan on using one for payment.  If payment is due on completion, make sure both parties agree before starting the job.

  • Make it your policy to never make full payment until the outsourced job is complete.

Some unscrupulous subcontractors make a living preying on individuals by taking partial payment up front and then disappearing.

Unless you know who you are working with, never agree to large partial payments up front.

  • Make sure an agreement is reached for a completion date before the job is started.

If you have a large outsourcing job, make sure you agree on a timeline for completion.

  • Large jobs may also require project updates.

It’s a good idea to agree beforehand how you will receive these updates.

  • If necessary, write a non-disclosure or no compete clause into your contract and spell out in detail how long the provision will remain in force.
  • If there is any expectation of confidentiality, make sure to write a clear confidentiality clause into the contract.

This is especially important with new software and scripts.

  • Ownership of every project should be clearly spelled out in writing.

There should never be any doubt as to who has rights to the project.

  • In some instances you may need a provision in the contract that spells out how long the subcontractor is liable for potential problems that may occur.

Identifying a specific time frame that the subcontractor will be on call to fix any potential problems could be save you a lot of money in court costs and legal fees down the road.

If you have any plans on outsourcing in the future, refer to these 10 tips for reaching agreements and your chances of having a smooth working relationship with your subcontractor will be improved dramatically.

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