contract terms for stalled projects?

[Ernest Burden III]

I have a fairly simple agreement for clients to sign. I want it to not look like a house mortgage, encouraging them to actually agree to it and feel bound by it.

 

My two favorite lines are "Usage rights granted upon full payment" and "Client agrees to pay $.../hr. for additional work beyond scope of this agreement".

 

But this year I have run into a problem that my contract does not cover--project-in-a-coma, or worse, zombie projects. I will be working happily on schedule, the client lets me know they need to make design decisions, or secure a city permit, or get paid themselves, whatever. So let's hold off for a bit, they say. Fine. But the time turns into weeks, months. I cannot progress, plan or invoice a final.

 

Does anyone use language to cover this, perhaps '10% of total contract fee added per month after 30 days on hold'?

 

One project is on hold for six months, but I got a 50% retainer and have done about half, so nothing to bill. Another big job is on hold for more than nine months, after being in-process on and off for a year (many mini-holds) and the client cannot tell me when, or even if, it will come back to life. Unfortunately, she also does not agree that she should pay for work-to-date. It would be nice to have anticipated this in my contact.

 

Maybe some of you do?

[Francisco Penaloza]

I would be very curious about this one too, I have the same problem with some projects, I always get half at the beginning, or 1/3 if the final fee is large enough, and that seems "ok" to me to wait. But dragging a project for more than one year... I felt like I should be allowed to adjust the project price to reflect inflation or something

 

But I also understand that sometimes this delay is beyond my client, (developer or Architect)

[Ernest Burden III]

...But I also understand that sometimes this delay is beyond my client, (developer or Architect)

 

They will always say it is someone else--their client, a city council, the weather... but they then impose those conditions on us. It happens, I'm fine with working around these issues, just want to find a way to be financially covered when delays go from reasonable to ridiculous.

[Tommy L]

Yes, set a project termination date (even if its a long way out) and include a 100% kill fee. Also include a penalty for late payment.