written by Chris Arnold on June 30, 2009

When you get the opportunity to work alongside fellow designers on a respected design team, you'd typically jump at the chance to collaborate and, at the very least, scratch at the opportunity to show you're worth your weight in gold. But, what happens when a seemingly harmless scenario turns into an issue that could make or break a relationship?

For a long time I didn't have a care in the world when it came to such agreements with local cohorts of design and business. Invoices were sent out, payments came in, and thus completed the circle of mutual agreement and understanding. But, I was unfortunately wrong to think that way.

It wasn't until an invoice slowly aged almost 100 days that I realized the volatility of such agreed upon non-agreements. Granted, we typically aren't talking about a bucket of cash. Yet still, a substantial amount of income for a small business, and an amount that is certainly relied upon in a given month. I'm not the first to take to heart the notion that we as designers (but first as business owners) must learn to assess this landscape to prevent potential downfalls.

The designer's mindset

We grasp the concept that clients have a knack for bringing forth tricky scenarios, which is why having a group of colleagues that pass on work can be a breath of fresh air. It's easy to gobble up this type of work when you know the colleague well. And let's be honest with ourselves: It's a great feeling. As designers and developers, we're constantly looking for approval—on some level—from friends, family, and colleagues about our work. A go-ahead nod from one of our own is typically a welcomed gesture. From this, however, I've noticed two distinct things at work here:

1. Pride, and
2. Naivety

There is pride felt when another colleague respects your work enough to pass along his or her own project to you, and naivety brewing when you begin to look past the standard project-start norms, glamorously hoping (believing?) that the exchange will be a smooth process.

The uber-basic workflow would be something like:

1. Understand the scope of work
2. Complete the work as scheduled
3. Send an invoice
4. Get paid (and move on)

We understand the transparency with the end client is a big bonus. Assuming the project makes sense for your company, why not tackle it? Virtually no direct dealings with the client, working with a respected colleague, and it's being offered at your going rate? Heck, shoe me the dotted line!

Or do you have one?

When I accepted contract work in 2008 from a strong colleague tie, and in many respects, a design mentor of mine, I thought nothing new of it. Due to the nature of our relationship, we quickly swooped into production mode and completed the deliverables. But then we hit an invoicing snafu and my company wasn't paid for nearly 100 days.

Hindsight being 20/20, perhaps it wasn't so much the situation itself, but the letdown that came from a working relationship that had prevailed years prior. Coming from a team leader that stressed communication as a mainstay in daily life, the scenario was a big let down. I became the sole reason dialogue continued and payment eventually arrived.

And with that, the issue became painfully clear. Somewhere along the line the separation of 'business relationship' and 'friendship relationship' became so blurred that I never established a contractor agreement that outlined my requirements for service.

Payments kindly expected on time

It's been noted that the best contractor agreements are those that work as if the actual end of the line client isn't in the picture. That is, the company that outsources work to you is your client and, subsequently, pays out monthly with each invoice just as a client would (or should). You did the work. You shouldn't have to worry if a check will ever roll in.

The professional practice of design comes with it certain unspoken rules that garner respect; or alternatively, rules that—if broken—can quickly turn you into someone ultimately disrespected. The 100-day debacle brought forth a few things all designers should keep in mind when they pass along or accept work.

1. Should your company (or independent self) hire another individual, it's absolutely your deliverable to pay those that have entrusted their receivables with you.
2. Present a basic agreement that outlines deliverables and payment schedules clearly and simply, no matter how strong a tie you believe them to be.
3. As a contractor, attain current beta on the financial state of a business, as it can be crucial in making decisions that may affect your receivables and ultimately shape the nature of the relationship.

At the end of the day, the relationship has to feel right. Beware of past red flags and mentally prepare for approaching these scenarios before you embark on them. Tighten up your game by having an agreement in place, the right mindset, and an understanding of what's expected from both parties. You'll be glad you did so in the end.

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