A lot of Software Agencies have this common problem.

You know how to develop a killer product.

You know what the client needs.

But when it comes to client management, a lot of you fail.

That's why a lot of projects also get delayed.

And that delays cost you a lot of your time and money.

Something that's just not available for free.

Let me share with you how you can avoid such cases with the help of a case study.

Today's case study is quite straightforward.

Our client, who was running a software agency, wanted us to create a custom contract.

A Contract that would define their engagement with their customers.

And also tackle some of the common annoying problems they face in the business.

Problems:

1) Handling Scope Changes:

The Agency wanted to have a mechanism to handle scope change if it happens in the course of the project.

2) Managing Endless Revisions:

The Agency has had issues in the past where the client was endlessly asking for revision, and the project just carried out endlessly.

3) Limiting Liability:

The Agency wanted to limit and exclude its liability in a worst-case scenario.

Solutions:

1) Scope And Acceptance Criteria

Our first step was to start with the scope of work.

So we got the development specifications, including functional specifications, along with work milestones to streamline the process.

We also provided the number and scope of revisions the client can request, along with the acceptance criteria.

Deemed Acceptance was included to limit project delays, and release of payments.

2) Timely Completion

Software projects rarely go strictly as per agreed timelines.

I have seen a 3-month project stretched to 1 year due to reasons like, the client not providing any necessary information.

And taking excessive time to accept a milestone, and changing scope midway.

We added clauses to deal with such cases.

This included the extension of the project completion date, if occurring due to the client’s cause, to prevent any allegation of breach of contract.

3) Covering Risks and Protections

Our last focus was on business protection.

So we included an all-enclosing exclusion clause.

This was to exclude indirect and consequential costs, loss of profits, loss of opportunity, etc.

We also included “wasted expenditure” as well in the exclusion clause.

This was to limit the recovery of payments made to the agency to date.

This provided a safety net with an overall cap on liability.

With the help of these 3 steps, our client was able to:

1) Avoid any scope creep or delayed payments in the future

2) Have more of a firm grasp on the timeline of the project

3) Protect their overall business

Sometimes the simplest of solutions can have long-lasting effects!

If you are even remotely stuck in a similar situation or have similar problems, there's a solution.

The solution is a customized agreement.

No, I am not talking about the template you are using.

But an actual contract is made to fit your business.

Worst case scenario, you can still get some tips on how to protect your biz:

https://calendly.com/mtlegalteam/discovery-call-with-mtlegal-team

^ Next week is free, so catch ya on a call.

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