Running a Web Development Agency is not easy.

There's a lot to consider - from designs to the actual functionality of the website.

But it doesn't mean it's not rewarding.

But only if you are selling to the right people. 

But just like any other business, it's still full of risks. 

In this case study, we talk about 3 such cases.

Our client was running a Web Development Agency in the UK. 

They had a template contract to sign with their clients which was working fine for them. 

However, lately, they faced issues with clients including endless revisions, and incurring out-of-pocket costs.

They wanted a fix for that and hence, approached us to possibly advise and amend their agreement.

Problems:

1. Increased Work Load:

They had faced some issues in the past concerning the work. 

The client sometimes increased the scope or asked for endless revisions without any additional payments.

And that's never good for any agency.

2. Slow Payments:

In some cases, the client just did not clear their invoices, even after getting the work done.

The point of getting the work done on time is to ensure the payment is also released on time.

If the invoice is not cleared, then it's a huge red flag. 

3. No Court Action:

While resorting to the courts would only be their last option, they wanted to make sure if things went to court they were protected.

Because court cases take a lot of time and money.

And no one wants to invest in that. 

Solutions:

1. Streamlined Process

Our first step was to clarify what was considered “revision” and what would be beyond the scope and hence, incur extra cost.

We also included a max cap of 5 revisions, excluding minor changes if required.

We also added a base hour provision for adding extra scope of work.

This is to ensure that any extra work that's done is always compensated.

2. Securing Payments

Earlier the contract said that once the client accepts a milestone, the payment will be released simultaneously.

So we considered contingencies such as where the client puts the agency in a state of suspension. 

And where the projects get delayed due to the client’s non-cooperation.

So we included provisions for early release of payments.

We also provided an “acceptance criteria” with a provision of deemed acceptance by the client.

The Deemed Acceptance will help with the cases where the Client is not responsive or taking too long to accept a milestone. 

3. Protecting the Business

Unsurprisingly, the template also did not answer who owned the IP during the development and only mentioned the IP assignment upon completion.

So after due discussion, we retained the right of agency over the IP until the payment for the work done is released.

And also made limitation of liability provision for safeguarding the business.

The work was completed and 3 Problems were solved for the client:

a) Late Payments

b) Out-of-Scope Work

c) Late Acceptance of Work and Revisions 

With these 3 problems in the clear, our client had much better control and way of providing quality work.

If you are running a Web Development or a Software Development Agency, make sure to address these 3 points.

Because there's a high chance that you might have faced the same problems in the past.

And there's no reason to repeat the same problem over and over again!

Good luck with the agency, and drop me a message if you need help! :) 

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