Terms and Conditions

[Heapsy]

Hello,

Today I am in my last day of full time employment before entering the big wide world of freelance!

I am a sole trader, and am just hiring my services, I don't own any kit.

Before when quoting for jobs I have never included any T&Cs to which the customer automatically agrees to adhere to when accepting my quote but having just had 2 weeks work cancelled at the last minute I'm planning on adding some. :)

I am thinking the following:

Payment - Agree to pay full amount within 30 days of invoice date

- Legal stuff about late payment etc

Cancellations - Agreed fee for cancelling a gig

 

I'm doing OK with the payment ones but am struggling to phrase the cancellation T&Cs.

 

Would people mind posting what their T&Cs state?

Also, what figure to people ask for from a cancelled gig?

I don't want to make a bad impression on potential clients but also feel the need to protect myself.

 

Sorry this is a bit of a ramble, your thoughts would be appreciated.

 

Heapsy

[Dave]

Let me start with an important point that's off-topic from your original post.

 

A key thing is that your Ts & Cs are worded such that your clients contract for "services" (ie they get a, b, and c done for them) rather than for your service (ie you work for them for so long). Included in the former should be the right for you to send a substitute if you are unavailable. Otherwise, there is a danger that you will be seen as a casual employee (and subject to tax/NI at source) rather than a self-employed subcontractor, especially if you repeatedly work for the same clients. There's lots of other posts about this on BR.

 

Regarding cancellations, practices vary, and I've found it hard to get clients to agree to pay cancellation fees for anything more than a day or two's notice. If you're not prepared to be flexible, the chances are that someone else will be. But I'd charge them the full rate for a last-minute cancellation.

 

But what I do is, if I have another job come in when I'm already booked, I contact the first client and ask them to confirm it. I make it clear that I'm turning work down and that they will be charged if they cancel. This has never been a problem so far - my clients understand that if I have a choice between possible and definite work, I need to choose the definite job.

 

Most of my jobs are just a day or two. In the event of a longer-term booking I'd always agree detailed cancellation terms beforehand.

 

The only other thing to bear in mind is that, in my view, it's inappropriate (and possibly unlawful) to charge for cancellation if you can obtain alternative work.

 

HTH

 

Dave

[Rob_Beech]

Agreed with Dave there, some wise words. I'd also like to add that (and this will depend on how you are paid) if a job is cancelled last minute and they agree to pay you be it 100% or otherwise, if you were paying your own expenses then they are allowed to take off a reasonable amount for say fuel which you will no longer have to pay. However any expenses you have had to pay in advance (ie a hotel) should not be deducted in this way.

 

For example.

 

You are offered £250 (random figure) for a days work but you must get yourself there and back and see to your own needs with regard to accommodation, food etc. You fuel or train ticket etc amounts to £50 say, your hotel £40 an say £10 for a bag of chips and a meal somewhere. If they cancel last minute they will often pay you the full amount less reasonable money for fuel etc. They would not be able to do this if for example you'd pre-booked a hotel, I'm not sure where the law would stand on this but its a bit of common courtesy.

 

If however you were to be paid £250 plus expenses you should be paid in full and the expenses would be £0 (again the same rule applies if you've pre-booked a hotel).

[paulears]

I've had a couple of times problems when I get booked by somebody in London, to go to say, Manchester, to do a job. I walk in and they say - oh, didn't somebody tell you it's been cancelled - it's happening next month.

 

In these cases, I've already spent the night in the hotel, eaten the food in the restaurant, and driven maybe 500 miles as a round trip (at 37p/mile). I invoice it exactly the same as usual, but add the phrase "aborted work at xyz - to be re-arranged" and so far, touch wood, they've all been paid with no comment.

 

A couple of these have been verbally arranged jobs, too - no official work order. For clients new to me, I do the paperwork properly - for repeat work, I have to own up to simply having a confirmation email, and no contract at all! I have another regular client who simply issue their own contract to me - and I don't use mine at all.

[Jivemaster]

You can send a contract OR they can send you a contract, not both - otherwise there will likely be two conflicting sets of T&Cs

 

If they send you a contract one thing to look for is the payment terms. Some photographers I knew had a nice contract from a prestige client, then some more was added, then some more..... til this contract was almost a rolling work list. Trouble was that the contract only went through the payment process AFTER it was complete. So only when they stopped giviing our work did you start towards payment. This went on for several months til the photogs almost couldnt work for cashflow.

[StevieR]

Two things that spring to mind.

 

Firstly, get new clients to sign a form that signifies their acceptance of your T's & C's. This should make any future queries easier to resolve as you can bring this out to remind them what has been agreed.

 

Second - add a clause with regard to additional hours. I've been on many gigs where they have over-run or the client has decided to extend the evening. This obviously has a knock on effect on the crew and there should be an option in the contract where you can decide to either say 'no' or agree to additional period of work at a specific rate.

 

Oh, and get a lawyer to look over the document. Money well spent to ensure compliance with the law and to close up legal loopholes.

 

Steve

[Guest lightnix]

The PSA have a draft Freelance Terms & Conditions sheet available to members from their website.

 

Briefly (as I'm in a bit of a rush), on the subject of bookings: Following numerous "disappointments" over the years, I eventually came to the view that there is no actual booking until a Purchase Order has been issued, until then it remains an enquiry / pencil date only.

 

If I'm pencilled for a gig and another comes up for the same day, I'll offer the first pencil a chance to confirm; if they can't then it's a case of whoever gets their PO out first :P

 

Please note, though, that a Purchase Order by itself is (strictly speaking) only an offer of a contract, which you may refuse if you wish. No contract actually exists until you have accepted it in writing, at which point it is legally binding.

 

It's probably worth including the in your T&Cs somehow, but bear in mind that some companies are better at things like POs than others and even the best occasionally falter. Writing T&Cs is one thing, enforcing them is another :)

 

One thing you must include, though, is the Right of Substitution i.e. the right to send somebody else along, to perform the work in your place. Obviously this is not a right that people like to actually exercise, because it's bad for business, but it is probably the key (although not the only) indicator to the Inland Revenue that you are genuinely self-employed for tax purposes (assuming you have registered as such and have an accountant).

 

For more on freelancing terms and conditions, have a search for posts by me with either IR56 or IR35 in them - that should take you to the "main" threads on the subject.

[Heapsy]

Thank you very much everyone for your help, tis really appreciated!!

[Dave]

A couple of these have been verbally arranged jobs, too - no official work order. For clients new to me, I do the paperwork properly - for repeat work, I have to own up to simply having a confirmation email, and no contract at all! I have another regular client who simply issue their own contract to me - and I don't use mine at all.

A useful trick for a verbally arranged job is to send the client a quick confirmatory email along the lines of "this is to confirm that you have booked our services on xxx at yyyy" (preferably with a return receipt so you know it's been read). If they don't query this then it's a big plus in your favour should a dispute arise. If you want to be doubly-certain (eg if you have a bad feeling about the job), send it by fax or recorded delivery as these have more legal weight.

 

Second - add a clause with regard to additional hours. I've been on many gigs where they have over-run or the client has decided to extend the evening. This obviously has a knock on effect on the crew and there should be an option in the contract where you can decide to either say 'no' or agree to additional period of work at a specific rate.

I couldn't agree more. The problem is that many production companies (that employ crew) are afraid to be firm with their clients and say "if the job overruns through no fault of ours then there is likely to be a financial implication". When it does overrun you ask your client for more money and they say "but we can't get any more out of the end client". In other words the freelancers are at the bottom of the food chain and get the worst deal, partly because of the sloppy business practices of our clients. That's just not on. It is ridiculous to expect an open-ended commitment for a fixed price. By insisting on sensible extra payments for increased work, we can encourage good practice throughout the industry. Also, the thing to remember is that, in the majority of cases, if an event overruns the client will get hit with a large extra bill from the venue, which will make the increased crew costs seem trivial by comparison.

 

The other issue is if a job over-runs because your client (normally the production company) has messed up and, for example, underestimated the amount of time a rig/get-out will take or not employed enough crew to get the job done in time, or the truck doesn't turn up on time, etc. In those cases I tend to be a bit more sympathetic to doing a bit of unpaid extra time, but if there's a lot or I think they've not done enough planning I'm more inclined to be strict about it.

 

It would be nice to be able to walk away if a job overruns, but I think I'd lose many clients if I did that. When accepting a booking I do make it clear if I need to finish at a particular time (usually because I need a minimum amount of sleep!) and I've never had a problem with that.

[Guest lightnix]

I'll just start this post by popping in some links to a couple of currently related threads...

 

'Expenses', Expenses and paying tax

T&C's advice please

 

...get new clients to sign a form that signifies their acceptance of your T's & C's

Not neccessary - just insert a clause early in your T&Cs, saying that the issuing of a purchase order implies acceptance of them in full.

 

Sorry to say that I'm not totally sure you can charge extra after the job and when it comes to overrunning gigs, I'm more concerned about the H&S implications these days, than I am about a few extra quid. It's these concerns that I take to my clients now, they seem to receive a far more sympathetic ear than demands for more cash ;)

 

One idea that sprung to mind recently (although I don't know if it would work) would be to ask your client (the hire / prod. co.) to indemnify you against any legal costs / compensation claims arising from accidents involving you, as a result of them asking / expecting you to work over the agreed hours. You'd probably need to spend money on a solicitor, to get a letter drafted that would stand up in court. Ideally, they would be able to find a way of incorporating this requirement into your T&Cs (the less you expect your clients to sign, the better IMO).

 

The problem is that many production companies (that employ crew) are afraid...

One more time...

 

HIRE / PROD CO'S DO NOT "EMPLOY" CREW - THEY ENGAGE THEIR SERVICES AS INDEPENDENT, SELF-EMPLOYED SUBCONTRACTORS!!!

 

No disrespect to you, Dave but the "problem" IMO, is that too many self-employed crew have a self-image which ultimately defines them as casual employees :(

 

In other words the freelancers... get the worst deal, partly because of the sloppy business practices of our clients. That's just not on. It is ridiculous to expect an open-ended commitment for a fixed price...

Agreed, but as I say, I think it's better to enforce hours through H&S than overtime payments - that way there's incentive for everybody to get the job done on time. With overtime, there is a danger that some departments may drag their heels, in order to boost their pay :P

 

The other issue is if a job over-runs because your client (normally the production company) has messed up and, for example, underestimated the amount of time a rig/get-out will take or not employed enough crew to get the job done in time, or the truck doesn't turn up on time, etc. In those cases I tend to be a bit more sympathetic to doing a bit of unpaid extra time

Truck delays I can understand, under-crewing less so. It's not that I enjoy being some kind of militant (and don't consider myself to be one), it's just that after twenty-five years of this sh*t, I am fed up to the back teeth with the attitude that, "Our client has f*cked up, we didn't cover for it, therefore you must fix it." :(

 

It would be nice to be able to walk away if a job overruns, but I think I'd lose many clients if I did that.

Or maybe they'd lose experienced crew ;)

 

I think that if things are going to improve, regarding hours and T&Cs, we have to start looking at the whole Industrial Relations scene as a two way street, where companies have to demonstrate that they are worth working for, as much as crew have to demonstrate that they are worth booking. If the recent story about the growing shortage of technicians is true, then this may become easier; but only if the crew start to develop a more positive and business-like self-image

 

When accepting a booking I do make it clear if I need to finish at a particular time (usually because I need a minimum amount of sleep!) and I've never had a problem with that.

Me neither. Any time there may be a "borderline diary issue" on a show, I will inform the client in advance and invite them to look for someone else if it's going to be a problem. If I get the gig and it overruns, at least I can say, "I'm sorry, but..."

 

But that's what T&Cs are all about, isn't it? Letting the client know, in advance, what level of service you are able to provide and where the boundaries lie.

[Dave]

Sorry to say that I'm not totally sure you can charge extra after the job and when it comes to overrunning gigs, I'm more concerned about the H&S implications these days, than I am about a few extra quid. It's these concerns that I take to my clients now, they seem to receive a far more sympathetic ear than demands for more cash ;)

Yes you can charge extra if it's in your Ts & Cs or has been made clear to the client beforehand. I've done it myself on several occasions. If you've quoted for one thing and get asked to do more, then you're perfectly within your rights to vary the quote. I've also been known to refuse any more overtime because it's not safe for me to continue.

 

The problem is that many production companies (that employ crew) are afraid...

One more time...

HIRE / PROD CO'S DO NOT "EMPLOY" CREW - THEY ENGAGE THEIR SERVICES AS INDEPENDENT, SELF-EMPLOYED SUBCONTRACTORS!!!

 

No disrespect to you, Dave but the "problem" IMO, is that too many self-employed crew have a self-image which ultimately defines them as casual employees :(

My apologies Nick, I used the wrong terminology. But it is also the case that we are treated as casual employees in all but name (and tax status).

 

To be honest with you, I think if you looked at the working practices of many freelancers, they would actually be classified as casual employees. I've no problem with this (but I'm not in that category), but from what I've seen, many people would not qualify as self-employed based on the various tests (right of substitution, risk of making a loss, etc)

 

In other words the freelancers... get the worst deal, partly because of the sloppy business practices of our clients. That's just not on. It is ridiculous to expect an open-ended commitment for a fixed price...

Agreed, but as I say, I think it's better to enforce hours through H&S than overtime payments - that way there's incentive for everybody to get the job done on time. With overtime, there is a danger that some departments may drag their heels, in order to boost their pay :P

At the end of a 12 hour call I'm often more interested in going home that getting extra money for overtime!

 

The other issue is if a job over-runs because your client (normally the production company) has messed up and, for example, underestimated the amount of time a rig/get-out will take or not employed enough crew to get the job done in time, or the truck doesn't turn up on time, etc. In those cases I tend to be a bit more sympathetic to doing a bit of unpaid extra time

Truck delays I can understand, under-crewing less so. It's not that I enjoy being some kind of militant (and don't consider myself to be one), it's just that after twenty-five years of this sh*t, I am fed up to the back teeth with the attitude that, "Our client has f*cked up, we didn't cover for it, therefore you must fix it." :(

I couldn't agree more, and like you have had more than my fair share of crap jobs. And I do sometimes feel like I'm being a militant as well, when I have to be strict with clients over things like working hours. But otherwise you can easily get exploited.

 

It would be nice to be able to walk away if a job overruns, but I think I'd lose many clients if I did that.

Or maybe they'd lose experienced crew ;)

 

I think that if things are going to improve, regarding hours and T&Cs, we have to start looking at the whole Industrial Relations scene as a two way street, where companies have to demonstrate that they are worth working for, as much as crew have to demonstrate that they are worth booking. If the recent story about the growing shortage of technicians is true, then this may become easier; but only if the crew start to develop a more positive and business-like self-image

Again, I couldn't agree more. It hasn't happened to me yet, but I've come across quite a few people who refuse to work for certain (in some cases, very large) clients because they know they'll be badly treated. I remember one guy who ended up taking a client to court for seriously overdue invoices. His contact said "you realise you'll never work for us again", to which he replied "I don't want to" !!!

 

I sometimes feel that there are too many freelancers, and if you try to expect reasonable treatment from a client they'll replace you with a 20 year-old that can work a week without getting any sleep. Perhaps the shortage of technicians is because few people stick it out for long enough and so the real issue is getting people with enough experience.