I have decided to work as a freelancer. I have developed a software and have successfully given the presentation demo. The client liked it and has agreed to implement the project in his organisation.

But the client has asked me make it sure that I wont run away with the money without completing the project. The cost of project is high and it is not possible to complete it without acquiring the advance from the client.

What are the practice that is usually followed ? I myself somehow agree with the client query. I know I will be able to complete the project. I do not intend to cheat. But how to prove it to client? What to do in such situation?

closed as off-topic by Arseni Mourzenko, gnat, Martijn Pieters, Kilian Foth, user53019 Feb 26 '14 at 20:04

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How do you ensure the builder that you contracted to build an extension to your house won't leave you with a half-finished extension? You sign a contract in which it is specified that payment occurs in several installments, with final payment only after acceptance of the finished product.

For software development, the same kind of agreement can be used, especially if it is a longer running project (more than a couple of weeks), with the intermediate payments either based on time (monthly?) or on intermediate deliveries.

Regarding the size of payments, the intermediate payments should be enough to cover the costs you make (it shouldn't be needed that you eat into your reserves while working on a paid project), and the final payment should be a significant portion of the total sum to have an incentive to finish the project.

  • .. and make sure you are specific about what those final acceptance criteria are to ensure that final payment is actually paid. – Michael Green Aug 16 '14 at 11:10

I would say bill weekly. If you show him progress every week, and send him a bill at the same time each bill will be small and you both can have some confidence

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