Executed contract

Frequently, the client requests revisions of the proposal. Once those are agreed upon and the proposal is accepted, the contract is drawn up and executed. This document should include: 

• Delivery date
• Deliverables
• Terms and conditions concerning non-disclosure
• Intellectual Property Rights          
• A clear description of each party's responsibilities          
• Functional specification provided by client          
• The price Payment terms  

Pricing is usually on either a fixed-price or time-and-materials basis. Payments on fixed price contracts are expected at project commencement. The vendor meets milestones upon final acceptance by the client.

Payment terms for time-and-materials contracts are variable with weekly to monthly invoicing on agreed terms of credit.

Preliminary Project Plan

The project plan is created by whoever is managing the project. It should include: 

• A work breakdown 
• The sequence of events (usually a PERT chart) 
• A project schedule 

Both the client and the vendor should sign off on this document.

 

 

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