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Advice Line | Bob Lewis » Advice for a newbie consultant

December 13, 2006 | Comments: (0)

Advice for a newbie consultant



Dear Bob ...

After a 10-year career as a staff employee (application developer) at various organizations (from tiny to mega), I am about to start a consulting contract. This is my first foray into the contracting arena, although I have been in a consultant role before. Initially it is short-term, but the potential for extension is great.

Other than the typical blurbs that are regurgitated ad nauseum, do you have any gems of advice to offer someone entering this game?

Thanks,

- Eager but Uncertain

Dear Eager ...

A lot depends on whether you're selling your effort or your wisdom ... whether, that is, you're going to be a contractor or a consultant.

If you're going to be a contractor - a developer-for-hire, for example - it's a simpler proposition. The typical blurbs that are repeated ad nauseum pretty much cover the ground. One point that isn't repeated ad nauseum is that satisfying the terms of your contract isn't enough. It isn't even what's most important.

What's most important is to make sure they like you. If they do, you'll never get into serious trouble, you will get renewals, and you'll get good references and referrals. If not, the quality of your work won't matter very much.

If you're planning to be a consultant ... someone who is hired to provide advice and guidance rather than effort as an alternative to hiring another employee ... all of the same ad nauseum advice still matters, as does the advice I just provided.

But wait! There's more!

Of all the advice I could give, one issue stand out. The first is that you'll be bringing your intellectual property (IP) into each engagement. You'll refine it while on the clock, and you'll develop new intellectual property as well. Which brings up the question of who owns it when you're done.

Most large companies these days have onerous IP clauses in their contracts. I've personally run across quite a few companies that try to reassign ownership of my IP, so that once I include it in a work product I no longer have the right to use it anymore. I've run across it enough to be pretty sure it's a trend.

So here's my advice: Read the contract carefully. Especially, look for clauses that should be mutual but are, instead, one sided - the non-disclosure agreement is a frequent culprit, and one place the IP issue frequently raises its ugly head.

And don't be afraid to negotiate. The individual who wants to bring you in will generally take one look at this sort of thing, recognize that you'd be either an idiot to sign it, or desperate, and tell you that "this is something you'll have to work out directly with Legal."

So long as you remain good-natured while negotiating, you won't offend anyone who can affect the decision to engage your services.

- Bob

Posted by Bob Lewis on December 13, 2006 04:48 AM


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"What's most important is to make sure they like you. If they do, you'll never get into serious trouble, you will get renewals, and you'll get good references and referrals. If not, the quality of your work won't matter very much."

This is also pretty well true for employees.

Posted by: doulos at December 13, 2006 11:40 AM

Actually, them liking you is the most important thing. If they like you, you will not become the 'convenient excuse' or the departmental 'punching bag'. Stand up for yourself if that situation develops and always be prepared to pull the plug.

Most companies deny that politics is present in the work force. In my experience, the more they deny it - the larger a presence it is.

Have good legal backup and get 'everything' in writing. Most of my worst blunders were because I had no CYA written documentation. The customer is never wrong - but they won't be so ready to blame you when deadlines are missed if they know you have all the change requests, delay requests, etc. in writing. Breaking the agreement is not as easy when they know you have a lawyer also.

Posted by: BigRonG at December 14, 2006 08:01 AM

Here's the flip side to those wishing to take ownership of all your IP:

Years ago, prospective clients would frequently argue that I should work for them at a reduced rate, because of all of the IP that I'd develop while working for them. My response would be "That would be fine. I'd be happy to work for you at 50% my rate for that benefit. However, I will have to surcharge you 250% for all of the IP that I am bringing to this job from my previous ones.

That usually put a stop to the debate right there.

Posted by: John at December 15, 2006 08:39 AM

Excellent point about IP, Bob. The way that we handle this at Vanguard Communications is pretty simple. We add a paragraph that parallels the contract language and identifies "Vanguard Materials." This includes models, processes, information, work products, and whatever else we may be bringing to an assignment that we have developed outside the subject Agreement and that we may incorporate into this project.

Our inserted language specifies that the IP rights to Vanguard Materials remain with Vanguard. We will grant a limited, non-exclusive, royalty-free license for client's internal use of those materials in conjunction with the other elements of the Work Product.

We have never had a problem with any client's legal department with this sort of language.

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