I've got a question for Web Development Agencies...

How many times will you allow a Client to pay you late?

I love the Web Development Space.

Mainly because I've recently gotten the pleasure to work with more people in this space.

And because of that, I see a pattern.

A pattern of problems that a lot of people in this space face.

Mainly, there are 3 problems that every Web Development Agency eventually has to go through.

Let me share what these 3 problems are in this case study.

In today's case study, we help a client who runs a Web Development Agency in the UK.

He initially approached us with concerns about challenges they were lately facing in their client engagements.

And these were:

Scope creep leads to endless revisions without additional pay, delayed payments, and inadequate business protection.

Problems:

1. Scope Creep and Unending Revisions:

Clients frequently expanded project scopes without acknowledging the additional workload, and adjustments to project budgets and timelines.

2. Cash Flow Issues from Delayed Payments:

Some clients were consistently late in clearing invoices, creating cash flow issues in business.

3. Overall Business Protection:

They wanted to make sure the business was protected in ANY scenario.

Solutions:

1. Defining Scope and Revisions:

Our first step was to work on their Scope of work.

So we clearly defined the scope of work in the contract, differentiating between standard revisions and scope-expanding changes.

We also imposed a maximum limit of revisions, with provisions for additional charges beyond the agreed limit.

This was super important for them as it made sure they couldn't just keep working for free.

2. Payment Mechanism:

We established a clear payment release mechanism tied to project milestones.

We also anticipated potential delays caused by client inaction.

And included provisions for early payment release in such scenarios.

We outlined acceptance criteria and deemed acceptance, enabling the agency to prompt timely client approval and release of payments.

3. Business Safeguards

The last step was to work on their overall business protection.

So we provided for exclusion and limitation of liability clause to a reasonable extent to maintain the enforceability.

We also accounted for certain contingencies where the agency could be held liable for no fault or third-party fault.

Now by implementing these 3 strategies into their contract, we addressed these problems:

1) Out of Scope Work

2) Late or No Payments

3) Overall business protection

Now the client was ready to take on bigger and better projects!

Sometimes it only takes one discovery call, and one amendment to the Contract, to fix annoying problems like this.

Now ask yourself - how many times will you allow a Client to pay you late?

Or how many times will you allow them to ask for revision on top of revision?

The solution is right in your grasp, as long as you are willing to reach out.

DMs are open to those who want to solve similar problems!

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