In the process of landing my first contract (hopefully) and have a newbie question?

**Dallas** · 12 June 2015, 15:39

No - run!

**TykeMerc** · 12 June 2015, 15:45

It's not normal, but it's not unknown.

It is certain they're trying to save money and exploit your goodwill even though they haven't earned any. As a startup they won't be keen to spend their initial capital so any they can save they will.

Obviously it's your call how much risk you want to take, but don't kid yourself the scenario you paint is a risk.

**DeathRay1977** · 12 June 2015, 15:56

At the very least, I found it cheeky. How do I tell them politely that they ain't getting any freebies without alienating them is the question? I am under no illusions that this is a sure fire thing. I still have my (poorly paid) permie job and won't jump ship till there is a signed contract in my hand!

**northernladuk** · 12 June 2015, 16:01

So many start-ups fail and we've had our fair share of people not getting paid by them.

Problem with start ups is it's all hands to the pump with no one getting much from them until it starts working so looking at work before you start, long hours, delayed payment, cash flow problems etc are a high risk. Unless you have an appetite for this level of risk or a big war chest i would suggest you leave it.

I'd say the CEO wants to speak to you to work out a what he's gonna get for next to nothing. Don't assume a contract will be forthcoming.

**greenlake** · 12 June 2015, 16:29

Originally posted by DeathRay1977 View Post

So an ex colleague contacted me the other day and asked me if I would be interested in a contract for a startup he is working with. So I chatted with the CTO the other day and it went really well. So much so that the CEO now wants to chat with me. Presumably to negotiate a contract?

Towards the end of the interview, he said something strange which threw me a bit. He asked if I would be willing to look at all the documentation on the software they are trying to build on my own time and just make a charge for my time once I start coding.

Is this normal? Should I be billing them for my time even when I am just looking at documents? It sounds to me like they are just trying to save money? I am also wary that he might be trying to get some free expertise and then not come up with a contract in the end?

Here's a different perspective....

Why would you NOT want to have a look at their documentation?

Have you actually been asked to deliver anything upon your review? If you have, then, yes, they are possibly taking advantage of your services. If not, however, this will give you a good insight into their product, and will perhaps help you in deciding whether or not you want to go ahead with the contract.

If you do accept the contract, they have already indicated that they'll pay for the time spent on the initial document review.

All the earlier advice given is absolutely valid, but don't discount an opportunity based purely on others' experiences.

**DeathRay1977** · 12 June 2015, 17:23

Originally posted by greenlake View Post

Here's a different perspective....

Why would you NOT want to have a look at their documentation?

Have you actually been asked to deliver anything upon your review? If you have, then, yes, they are possibly taking advantage of your services. If not, however, this will give you a good insight into their product, and will perhaps help you in deciding whether or not you want to go ahead with the contract.

If you do accept the contract, they have already indicated that they'll pay for the time spent on the initial document review.

All the earlier advice given is absolutely valid, but don't discount an opportunity based purely on others' experiences.

Actually that thought also crossed my mind too... No I haven't been asked deliver anything upon my review. And, in certain respects, they would also be taking a risk by letting me see their IP. Maybe I could read them but not deliver anything until there is a contract?

**northernladuk** · 12 June 2015, 17:34

Originally posted by DeathRay1977 View Post

Actually that thought also crossed my mind too... No I haven't been asked deliver anything upon my review. And, in certain respects, they would also be taking a risk by letting me see their IP. Maybe I could read them but not deliver anything until there is a contract?

You have it all wrong. You're treating them like a business. They are a start up. The rules can be very different. They won't be as process driven as established clients and won't have the same constraints around you seeing their IP at this point. Their one goal is get going. Protecting their business with defined process and rules won't be as much as a priority.

**DeathRay1977** · 12 June 2015, 17:45

Originally posted by northernladuk View Post

You have it all wrong. You're treating them like a business. They are a start up. The rules can be very different. They won't be as process driven as established clients and won't have the same constraints around you seeing their IP at this point. Their one goal is get going. Protecting their business with defined process and rules won't be as much as a priority.

I don't know if this makes a difference but the CEO was the owner of a company of 450 employees which he recently sold for large sums of money. So he isn't strapped for cash and sees this as a fresh start. So a startup, yes... But by someone with a proven track record in building up a business?

**SpontaneousOrder** · 12 June 2015, 17:56

Originally posted by DeathRay1977 View Post

I don't know if this makes a difference but the CEO was the owner of a company of 450 employees which he recently sold for large sums of money. So he isn't strapped for cash and sees this as a fresh start. So a startup, yes... But by someone with a proven track record in building up a business?

Large sums of money don't last long paying contractors without any revenue.

But... perhaps he's thinking along the lines of: "We're a startup and want to keep costs down. Perhaps you can look through the docs casually at home sipping a beer and then turn up to work properly?"

Seems odd it would be that important unless thee was weeks of document reading to do. But otherwise I suppose it's up to you and if you want the work.

Builders come and spend time quoting before they actually start work. Maybe he wants you to be confident you can do it before you turn up to start work.

I should be careful though, as others have said, that you get good payment terms with it being a startup.

In the process of landing my first contract (hopefully) and have a newbie question?