| Outsourcing projects can be a very good business | | | | out in the project agreement. |
| move for many businesses. Businesses often | | | | Escrow Details - Escrow arrangements may be a |
| outsource particular projects or certain non-core | | | | good way of doing business which reduces the risk of |
| processes for a variety of reasons, such as faster | | | | non-payment. An escrow involves the client handing |
| completion, expertise services, cost savings etc. | | | | over the payment sum to an independent escrow |
| Project outsourcing involves hiring external service | | | | agenct, which the escrow agent then transfers to the |
| providers, whether consultants, freelancers or | | | | service provider's account once the project is |
| companies, and delegating work to them. Often times, | | | | completed to the full satisfaction of the client. This |
| the potential external service providers are located in | | | | negates any chance of the client refusing to make |
| offshore countries, which might be more economical | | | | payments and also ensures a money-back guarantee |
| for your project, but can increase anxiety and | | | | if they don't receive quality services. Clients can refuse |
| skepticism about the offshore service provider's quality | | | | to release funds to the service provider if they find |
| and commitment to the project. This is why it is | | | | their work unsatisfactory. Such arrangements can be |
| important to put in place a written project agreement | | | | included in your project agreement. |
| at the commencement of the project. | | | | Timeline of the Project - The timeline of the project |
| A project agreement is a binding contract between | | | | should be included in the project agreement. The |
| client and the service provider that details all aspects | | | | timeline might set out the total duration of the project |
| of the project. Think of a project agreement as an | | | | (i.e. how much time will the service provider take to |
| insurance policy that helps ensure the project will be | | | | complete and deliver the project), or different |
| delivered on time, within budget and in accordance with | | | | timeframes for specific parts of the project. A project |
| your specifications and expectations. | | | | might extend to weeks, months or even years. In the |
| A project agreement also protects the interests of the | | | | case of long-term projects, you might consider |
| service provider, assuring payments will be made once | | | | breaking down the project cycle into manageable |
| the project is delivered.Here are some key things that | | | | parts (such as quarterly or monthly periods) and |
| you need to include in a project agreement while | | | | decide what needs to be completed and when. Such |
| outsourcing projects: | | | | milestone timeframes are a great way to help you |
| Parties - Make sure your project agreement clearly | | | | manage the overall project. |
| specifies the correct names of the freelancer and the | | | | Communication - Communication is one of the most |
| client. | | | | important but often forgotten parts of an outsourcing |
| Roles & Responsibilities - The project agreement | | | | project. When delegating your project to an external |
| should clearly outline the roles and responsibilities of | | | | service provider, you need to make sure that you |
| both the client as well as the freelancer. Clients may | | | | keep an eye on the project and communicate regularly |
| need to supply the service provider with raw materials | | | | with your freelancer. Therefore, make sure your |
| in a timely schedule so that the provider can use those | | | | project agreement details how the communication lines |
| materials to perform the project. Clients also have | | | | will work. Will there be weekly meetings or telephone |
| payment obligations. Similarly, the agreement needs to | | | | conferences. Do you want all deliverables to be |
| define the roles and duties of the service provider, | | | | emailed to you? It is a good idea to fix a monthly or |
| including exactly what the service provider is required | | | | weekly meeting or call so that both parties can update |
| to do and deliver. Are there milestone deliverables and | | | | themselves on what is happening with the project. |
| milestone payments to set out in the agreement? | | | | Disclaimer: Sabra Easterday is the owner and founder |
| Ownership Rights - Many times, clients hire freelancers | | | | of MatchB2B. Sabra is also a lawyer with a special |
| to create product solutions as per their requirements. | | | | interest in business issues and e-marketplaces. |
| For example, the freelancer might be creating a | | | | Notwithstanding that Sabra Easterday is a lawyer, |
| website, software applications and so on. A very | | | | nothing in this article and no services of MatchB2B or |
| common issue that arises in such cases is that of | | | | its website are legal services and no attorney-client |
| ownership of the deliverables (i.e. who does the | | | | relationship exists between any reader of this article or |
| completed product belong to?). The client who | | | | user, customer or potential customer of MatchB2B, |
| invested the money or the designer/developer who | | | | and MatchB2B, its website or Sabra Easterday. |
| designed it. Make sure you have the ownership sorted | | | | |