OUGD602 - HAWRAF Studio - Fees and Expenses

6B2.

Master Services Agreement:
Fees, Epenses and Taxes:

Unpaid fees - HAWRAF reserves the right to delay or stop work on any phase of the project if invoices are not paid in full and on time.
Penalties for late fees - amounts not paid will accrue interest if not paid within five days following written notice by HAWRAF to a client at a rate equal to 1.5% per month.
Third-party expenses - client will be responsible for payment of all out-of-pocket expenses incurred by HAWRAF in connection with a project, including, but not limited to, expenses arising from hosting plans, domain names, typography and licensing fees.
Travel expenses - client will reimburse HAWRAF for any pre-approved travel-related expenses including airfare, car rentals, taxi or other car services, hotels and meals.
HAWRAF expect payment in full at the onset of the project and an invoice is due within 15 days of the issue date.

Timing: Client Feedback and Approvals:

All feedback by the client on deliverables and revisions must be provided within 48 hours of HAWRAF's request. Any delay by the client in providing feedback may cause an increase in fees.
Changes in scope of work - decided whether the change is major or minor and charge a new rate depending on this.

What can be learnt from this?

From this information on contracting and other 'legal-stuff', it is considered that setting up a master services agreement is an important part for any new business (and potentially freelancers) working with clients in assuring that you have legal protection if any problem may occur. The fact that HAWRAF asked for payment in full at the onset of the project means that there is a limited chance they are going to lose money from clients which may occur if taking the approach where the client pays an amount at the onset and the rest at the end of the project. In addition, the fact they ask for feedback within 48 hours of their request also means they won't incur any potential losses of time and money in ensuring they can continue with the project in a timely manner and to potential specific deadlines.