[eluser]Daniel Moore[/eluser]
I don't start on a project without a partial payment up front into an escrow account. This protects both me and the client, as it is easier for the client to get a refund if I don't follow through, yet I am guaranteed payment if I do.
Part of the contract with the client stipulates that once the work has been completed, the remainder of the agreed upon price is due. If they don't pay, then they don't get to "take the site live" and the "site demo" is removed. As all this is stipulated up front, they have no legal recourse when I remove a site for non-payment. It encourages payment in a timely manner.
If you're going to be earning your living doing this, then it is a good idea to have an attorney draw up some standard contracts for you to use for various types of projects, where you have the ability to "fill in" certain elements of the contract, or select other elements from a "multiple choice" so that all bases are covered and you are protected against non-payment.
I won't start a project unless I have a signed contract.
If my best friend said, "Hey, I'll pay you $X if you'll do Y" then I'll have a contract drawn up stating that, and I won't do it unless he is willing to sign it. Verbal agreements, especially between friends, is a bad idea and has ended many friendships. The signed contract will show your friend that you are truly a professional, and he will respect you more for it.
My 2 cents.
