A Bit of Direct Work and some guidance required

**mudskipper** · 21 September 2011, 13:09

Originally posted by GillsMan View Post

Hi all,

So a previous client has contacted me recently and asked me to do a bit of one-off work for them. They want me to develop a bit of e-learning for them, and we've agreed a price. I am starting to feel like a proper contractor, however, I feel I could use some advice/pointers from some of the more experienced members, who've done this before. I've only been contracting for 18 months, and this is my first bit of direct work, and I'm charging for a bit of work, rather than a daily rate.

Excuse the nooby-esque questions (esp #2), but I hope someone can help:

1. I should put together a short contract, shouldn't I? Is there a template for such a thing? I'm not a PCG member, but I should be and would happily sign up if there was one on there.

2. The client has asked "Can you send me an official quote from Yourco Ltd on letter headed paper which has a line item for this charge, after I receive this I will generate a PO to you, after which you can send an invoice to our account payable department via me to be paid by cheque". I don't really know what he means by "a line item for this charge". Is that some particular format I should adhere to? Again, any templates would be useful.

Any other advice/pointers someone can offer me? Much appreciated for any and all help!!

I did a similar thing for a fixed price bit of work. We didn't do a contract as such, I sent an itemised quote with some Ts and Cs (can't remember where I cribbed those from) and they sent me a purchase order, which sounds like what's been suggested here.

**JoJoGabor** · 21 September 2011, 13:11

Send them a quote stating something like:

Deliver WidgetX @ £10000

Quote is valid for 28 days from the above date

For the Invoice, I would copy the format of something I have ordered online.

Eg company name, VAT Number, Company number, Item description, price, VAT Total and payment to be paid within 30 days. Plus customer details.

**radish2008** · 21 September 2011, 13:15

Originally posted by GillsMan View Post

Hi all,

So a previous client has contacted me recently and asked me to do a bit of one-off work for them. They want me to develop a bit of e-learning for them, and we've agreed a price. I am starting to feel like a proper contractor, however, I feel I could use some advice/pointers from some of the more experienced members, who've done this before. I've only been contracting for 18 months, and this is my first bit of direct work, and I'm charging for a bit of work, rather than a daily rate.

Excuse the nooby-esque questions (esp #2), but I hope someone can help:

1. I should put together a short contract, shouldn't I? Is there a template for such a thing? I'm not a PCG member, but I should be and would happily sign up if there was one on there.

2. The client has asked "Can you send me an official quote from Yourco Ltd on letter headed paper which has a line item for this charge, after I receive this I will generate a PO to you, after which you can send an invoice to our account payable department via me to be paid by cheque". I don't really know what he means by "a line item for this charge". Is that some particular format I should adhere to? Again, any templates would be useful.

Any other advice/pointers someone can offer me? Much appreciated for any and all help!!

1. Yes. Without a doubt. PCG has templates for contracts and I think A05-10 can be amended for either fixed term or fixed price. I joined the PCG when I first started but then left after a year, and looking at it now it seems to have morphed into a government quango. It's still a good thing though I think, and contractors need someone who has their back.

2. A line item is just a line on a spreadsheet that controls or details budgets and costs etc. Standard practice would be exactly as described although direct transfer would be the norm I think and not a cheque. As a Ltd Co you should already have invoice templates, business bank account etc ?

If you go fixed price make sure you charge enough and don't be tempted to go too cheap - you can always negotiate down.

Hope this helps

Steve

**craig1** · 21 September 2011, 13:16

1. I got most of my original contracts from Simply Docs. I just run the customised templates past a friendly solicitor once I've completed them to sanity check that I've missed nothing.

2. If you've done a contractor invoice, you can just reuse it, rename it as a quotation, delete the pay by bit and put your variant of the bits below. Alternatively, download a quotation template from somewhere.

Item 1. Completion of e-learning tool based on specification dated X. Y days at £Z = £
Item 2. Training. Y days at £Z = £
Item 3. (anything else) Y days at £Z = £

Make sure you've a section that says this is a time & materials project and that additional days agreed between you will be charged at £x, all rates exclusive of VAT. Also, your payment terms should be on this as well.

**Wanderer** · 22 September 2011, 00:02

Definitely look at joining the PCG, they have contract templates for this type of stuff.

They make sure you consider things like intellectual property rights - ie, are you developing a product that will become the property of the customer (and thus you cease to own the copyright and can never reuse it)

or are you selling the customer a license to use what you have created but the original work remains your intellectual property and you can reuse it or resell it.

There are also questions of confidentiality and non-disclosure which are neatly covered by PCG contracts without signing your life away. Getting proper T&Cs up front will make you look more professional and they will respect you a lot more as a business.

A Bit of Direct Work and some guidance required