In this episode of the Freelancer’s Show Reuven, Erik, and Jeremy discuss “Dealing with Contracts.” The Freelancers cover a number of important topics that involve contracts, trust agreements, as well as how to read a Master Services Agreement (MSA). This is a great episode to learn more about ways to take control of your contract documents and MASs.

0:50 - Reuven opens the show talking about contracts.  Reuven said he did not have contracts when he first started his business. But over time he has gotten screwed over. Reuven prefaced that they are not lawyers, so take this as advice only.

3:00 -  Reuven talks about things to understand are, who owns the rights, payment, insurance, and statement of work, etc. Reuven going into Master Services Agreements. Reuven asks if his peer use contracts. Erik says he uses master services agreements, and rarely contracts. Erik tries to work based on trust, and there is no motivator for contracts.

5:20 - Jeremy talks about being similar to Erik and rarely using contracts, but only master services agreements and trust. Jeremy says he does sometimes like to get paid up front. Reuven says when he does project work, he then uses a contract. Reuven says when he is doing training he does not use a contract. Reuven says sometime PO or purchase orders do serve as a type of contract. Reuven goes into to project fees and hiring lawyers.

9:30 -  Jeremy talks about project fee and specifications of the scope of work and how that may or may not need a contract. Erik says it is important for him to avoid proposals but good for him to agree upon what can be delivered. Again, Erik is fond of the trust agreement. Reuven says for courses he does not need to implement contracts.

13:00 -  Jeremy continues with how he implements a flat payment fee, but only when he can agree upon the scope of work. Reuven says he has only once done the pay in advance method once, and it worked great for him. Jeremy says it may be good to work with people and companies who had experience with this.

15:00 -  Reuven ask if a client comes to you with their MSA or Statement of Work, how much do you want or can change it? Erik talks about his experience with marking up MSA and statements. Jeremy talks about his experience with marking up an MSA that was an employment document.

18:00 -  Erik talks about using a lawyer to look at the agreement to see if that agreement might be hard not to violate. Reuven talks about his experience marking up an agreement and how all of the markups were no approved. Reuven continues with how he was able to get the company to agree to alter their agreement document. Reuven talks about having to acquire insurance to get work.

24:00 -  Jeremy and Erik speak on payment terms. Reuven talks about insurance that was not available to him in Israel. Reuven speaks about need Commercial Liability insurance in order to engage in work for certain clients.

28:00 -  Reuven talks about how Jonathan Stark is able to get companies to change their terms to pay everything upfront. This discussion goes into payment terms and net 30 or net 60 payment plans. Erik continues negotiating payment. 

31:00 - Erick brings up the scenario of hiring a lawyer if you are new to freelancing. Reuven talks about how some can get an agreement document written up for them. The freelancers agree that you only do this if you really need to hire a lawyer for an airtight document.

35:00 -  Reuven talks about adding a clause to open source software. Reuven says the client owns the IP but the changes are subject to other owners as they contribute.

36:00 - Reuven talks about a taxes in Israel and how being self-employed works in Israel. Erik asks about how the lawyer help is this situation. Jeremy mentions to pay attention to your very own customs and jurisdictions, in your place of business.

40:00 -  Reuven talks about having to change the legal business title in Israel. Reuven talks about how the law is interpreted according to their jurisdiction.

Erik