Before Doing The Work

There's been a few questions on going from hobbyist to a business. There are many areas of conducting a business that are better being aware of than finding out too late. I posted this on another forum as suggestions, that may be of some help here to those that are interested.

Besides everything that has been discussed, there's some good habits to get into. Whether you maintain your craft as a hobby for extra money, or as a profession, develop a package of "contract documents" that accompany any and all work. They can eliminate or at least minimize problems during the work and could be a determining factor if you'll get paid in the end.

First, I recommend an evaluation document. That's one that is taken by you when making contact with the client. It should have all your notes about the project, sketches done on the spot, dimensions and details as to anything that affects your work. Items like windows, doors, appliances, plumbing, outlets, electrical circuits, walkways, flooring, thresholds, wall construction, materials and finishes of near or adjoining furniture or fixtures...just about anything you can think of that could have a bearing on your work.

Next would be a proposal document. Your first meeting may prove to be the only one to get a signed contract. If not and you need to "get back to them", your evaluation document will be with you to remind you of what you saw while there. You won't be able to remember everything, and it will be your guide to figuring out what will go into the work.

The evaluation document will also be a document that will give evidence of any changes to the site that happened after your first visit.

So, your proposal can be your contract, or could be a bona-fide estimate in writing. Whatever the case, it should be written with any and all details that are inherent to the project. It's the "gotta be in writing" theory that protect both you and the client. It should include details of any question you or the client could have.

You might benefit from having a lawyer draw up a general contract for you with space for you to add details that enable the parties to sign or initial for approval.

You might think out how you want to get paid. Personally I don't take work without a deposit...usually 50%. That could cover cost of materials and some labor, but on some jobs it might not be enough. If it isn't enough to carry you to the next draw, make sure you have adequate resources to CYA. If the balance is due upon completion, remember you built and installed the entire job on half the money.

I contract for 50% up front, 25% upon inspection in the shop at a time when some changes if any can be made. That is a great time to hit them up for draw. Some installations can take a long time, and you may break up the balance in some way. I like collecting 15% at the time of delivery to the site, and 10% when I'm all packed up ready to leave.

I must say coming up with a payment schedule sets parameters for both the client and you. I have designers that I've worked with over several years that don't like to be nickeled and dimed. But, with all that in mind, getting stuck for the balance is no good either. The thought here is if you are going to get stuck, the less it is the better. Once you deliver, or install, its not your property anymore. It's up to a court to decide. That could take a long time.

I think clients appreciate honesty in how business is done. If you set standards in the beginning, then you have an understanding.

Your contract documents should include drawings to show what is being done. Both you and the client should sign off on your copies. Both you and the client should have the same details. This eliminates any question of what comprises the work. It also provides a basis for change orders, which if discussed in the "proposal/contract" will provide for change details and any charges and method of payment for those changes.

Your contract documents should contain any samples or itemized details for materials, colors, finishes, hardware, anything that goes into the work. You don't want any misunderstanding. All samples should be signed off as approved.

Your "proposal", or "contract" should be detailed as to charges other than just doing the work. Items like delivery, installation, removal or moving of any existing furniture or fixtures, any demolition and removal of debris from the premises.

You can't really ignore the law either. I'm not trying to put out your fire, but offer some thoughts that might help. If you do this as a hobby, and sell it, legally, you need an occupational license. If you aren't licensed, and you have to go to court to collect your money, you will likely not win and could be charged criminally.

Of course, once you apply for a license, there may be stipulations of where the work is done, questions about Workmans Comp, liability insurance, just red tape stuff. Some states allow you to manufacture and sell what you make, but require certification to install.

I would like to add to this run on dribble that I never got much satisfaction from getting a job being the lowest bidder. I also have lost bids because the bid was too low. I like the jobs I get where I'm the highest bidder. I guess that's a lot like being the only bidder, which happens when you are the only one that can do the work.

It's always foremost in my mind when I think about how much work should cost, because time out of my life will go into it.