Think of a father who promised to buy his son a bicycle if he gets an A in geometry class. The boy agrees with his dad’s condition written on paper, but what if the boy demands his father to buy a bike even if he didn’t meet the requirement? What is the right thing for a father to do? A wise father would remind his son of their agreement that he wrote on paper. The same applies to a client contract, where a company, service provider, or an employee tries to fulfill the client’s needs or wants but on certain conditions. If the client doesn’t meet the requirements, then it is only right for the other party to remind him of their deal.
When entering into a deal with your client, you may sometimes think that it is okay to finish it off with a handshake. Well, that may apply to some light arrangements but not with more substantial agreements. A client contract will protect you and your business in case issues arise between you and your client. For example, a coach who offers personal training for a well-known fitness company or gym needs to have a written agreement with his client concerning the term of the services he will provide. The client can’t complain about not receiving the personal trainer’s services once the term is over. Moreover, a client contract can also come in the form of a service agreement, but the details of each contract will depend on what kind of service you provide. Your business may fall into one of the different service industries, such as wellness, healthcare, insurance, finance, professional services, design, and more.
According to Statista, in 2017, the fitness industry’s worth, specifically the fitness category, amounted to $595.4 billion.
When we talk about the insurance industry, in 2018, there were about 773 life insurers in the United States.
In the world of design, in 2019, the total revenue of the graphic design industry reached about $15 billion.
Building a good relationship with your client goes beyond following what a contract states; it involves listening and serving your client with a sincere heart. Note that growing your business also means strengthening your relationship with your client. You may not see it, but a client who is satisfied with your service may refer you to another customer. With that said, here are some tips for establishing a better connection with your client.
The purpose of a contract is to ensure that the parties involved have the same goal in mind. The parties must agree about how the whole project will proceed. The following are steps on how to create a simple contract example.
Your contract format should include some vital background information about you and your client. This information includes your legal names and addresses. Also, use the official name of your business in the paperwork. Moreover, instead of using generic terms (e.g., service provider), use your legal name or your customer’s name on the entire contract.
Be specific about your duties and responsibilities as a service provider. For example, a client hires you to ensure that his office follows the laws of ergonomics. As a physical therapist, you should write the scope of your service. Which areas of the office do you have to modify? Who will provide the materials needed for the modification? What are the materials required? The goal is to make a project guideline so that the work will go smoothly between you and your client.
How will the client pay you? Will it be on an hourly basis or by project basis? If you want your client to pay you hourly, write your maximum work hours. If you want it to be on a per-project basis, state clearly what you have to deliver. Also, set the schedule for payment. For an hourly basis, you can request for payment per week or month. For project-based payments, you may need to provide an sample invoice for every milestone. The client may pay you after he gets an account every 15 or 30 days. Moreover, include the acceptable methods for payment, and don’t forget to write the penalties for non-payment.
Every process a particular project undergoes must have a deadline. As we’ve mentioned earlier, you and your client have deadlines to meet, so be specific about it. For example, client A must submit the requirements so service provider B can proceed with the next procedure.
Typically, for employee contracts, both parties can terminate their agreement after two weeks’ notice. However, for client contracts, the conditions for termination depend on every case. To protect yourself, include a statement about fees that are non-refundable once paid.
You can choose which state laws you want to govern or rule over your client or customer contract in case disputes arise. Choosing a governing law will be helpful, especially if your client comes from a different state. If you don’t have a reason to pick a different state, it is better to select the laws of your state. Traveling outside your state to resolve a conflict can be expensive and can cost you a lot of time.
Notice is the spare time one party provides another when they decide to end the agreement before the exact end date. A notice gives a service provider time to find another employer or give a client some time to find another service provider. For independent contractors, there is no law to protect them regarding this matter unless written in the contract. Nevertheless, courts may consider a case where an independent is wholly dependent on the client. In such a situation, courts may demand a specific notice period.
Independent contractors offer services in return for payment, but they are not like employees under the control of an employer. Independent contractors practice their trade, and some examples include plumbers, construction workers, graphic designers, accountants, engineers, and information technologists.
A service agreement’s purpose is to employ independent contractors or service providers for a specific job. It is a contract that ends after project completion. An employment contract, on the other hand, is a contract utilized to hire workers or employees. It is an agreement with a longer-term compared to a service contract.
A client contract is a document that guides the relationship between a client and a company or service provider. A client contract will remind a company or service provider of his obligations towards his client. Also, it will set the responsibilities of a client towards a company or a worker. With that said, you can check one of our client contract templates above and download it for your benefit.
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