The Power of Price Quotes + Contracts

Image created on www.canva.com.

We have oftentimes lectured on the importance of price quotes and contracts in our industry, including Judy's recent session at the 55th Annual American Translators Association Conference in Chicago in November 2014 (Quote This!), but haven't blogged about this topic in a while, so here we go (warning: it's long). Please remember that this is merely our point of view, and that we very much welcome others' opinions as well (just leave a comment). As always, for legal advice, please make sure you talk to a lawyer. 

In general, during most business transactions, the vendor sets the price and the buyer agrees to it, usually in writing if it's a service. This is even the case for something as simple as plumbing services, or agreeing to a monthly pool cleaning service. The customer calls and asks for an estimate, and the vendor issues it, states the terms, and has the client sign off on them. Very few professionals in any profession would consider working without such an agreement. Remember that our experience is limited almost exclusively to direct clients, but there's no reason we cannot get agencies into the habit of signing contracts as well (we gladly sign our subcontractors' terms/contracts, but few send them). The law is usually a good thing, and contracts are great. They spell things out and make them official. They also come in handy during disputes.

The few times a year we work with interpreting agencies, we are happy to sign their purchase orders, but don't ever enter into a working agreement without our own signed contract as well. Oral contracts are worth the paper they are written on, and back-and-forth e-mails are a poor substitute for a proper contract. Not that our direct clients would want us to skip the written agreement: they want a document where all the pertinent details are spelled out so there are no surprises. This even applies to customers who want something as simple as a birth certificate translated. The issuance of price quotes is so widespread in any business transaction that pretty much every potential client we come in contact with expects one. A contract is the cornerstone of a professional business agreement, Sadly, in our industry, the vast majority of translators and interpreters skip this step, which can be detrimental for their businesses. We think that most non-payment situations can be made much easier if a signed document exists -- it also strengthens any legal case if it comes to that.

Image created on www.canva.com.

Now, when we work with interpreting agencies for conference interpreting assignments, we issue a very straightforward price quote that neatly summarizes all the details (which we copy and paste from e-mail conversations; it's also great to have all the information in one place). Our contract was drafted by an attorney and is routinely reviewed and updated, but it's very standard. It specifies the details, the time, the date, the booth partner, the location, the equipment to be used, preparation material, overtime, breaks, our payment terms, etc. The idea here is to agree to everything in writing so both parties know what to expect. We will post more on the actual essential elements of a quote in a future post, we promise! In the meantime, here's the ATA's great model contract. In general, the document should be concise, easy to read, and thorough without being an undue burden to the client (no one wants to read 1o pages). And of course the agreement has to work for both parties, so there can certainly be some back-and-forth negotiating until everyone is happy. There is a signature section where we have the client sign first and then we counter-sign. Once signed, that document becomes a binding contract. We really don't see a downside to it.  In 99% of cases, the client signs and we move on. We recently had an agency refusing to sign, but they could not come up with a reason, so we wished them best of luck on the project and amicably parted ways. We took the refusal as what it was: a red flag.

Freelancers really must get into the habit of issuing legally binding documents to protect themselves, and agencies will get used to it once it becomes standard practice. Perhaps some clients don't want to sign contracts and want to convince us to waive it, but basic business skills include knowing that working without a contract is usually a risky endeavor at best, and a disastrous decision at worst. For the record: for repeat customers we oftentimes have long-term contracts and/or don't make them sign each price quote for each project (we oftentimes accept an e-mail reply telling us to proceed). Of course you also have to be reasonable and make things convenient for your client -- all while protecting your business interest.

We would love to hear your thoughts, dear colleagues. Simply leave a comment below.