Dealing with web developers

Dealing with web developers

Web development is still a largely unregulated industry so how do you know where you really stand?

More and more, small businesses are having to compete with larger businesses in Australia and using technology to do so. This includes web-development and various web services. Read on as Progressive Legal discusses top tips for working with website developers.

Information favours the developer

At this stage, web development is still unfortunately a very unregulated industry. It’s also an industry that is extremely difficult to work out usually what has happened as they usually keep code and sites off-line until their fees have been paid in full and then they hand it all over.

Usually the goal-posts keep moving and more things need doing and costs blow out very commonly. There’s an inherent asymmetry of information favouring the developer over mostly either unsophisticated or inexperienced small business owners.

It can be very costly if the relationship goes sour

We’ve had loads of small businesses coming to us with issues with web developers. Some have been ripped off thousands, tens of thousands, even hundreds of thousands of dollars! Some even with nothing to show for it at the end of the day.

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They have spent all their hard-earned savings to build a software platform or app or website and having nothing left over for important business activities or other income producing activities like marketing.

We have so far only found a handful of people in this industry that take care of their clients and handle things well and professionally.

Most certainly, they are very tired of being “tarred with the same brush” as all the others out there. Indeed, they’re really hard to find, like all good business advisors.

Ensure the initial contract is comprehensive

It is imperative when negotiating the initial contract to make sure it covers a whole host of important clauses to protect the business and its owners. See the tips in this section for more detail. You can also read how an ecommerce lawyer may be able to help you.

The consequences of selecting the wrong web developer can be dire. It can be extraordinarily expensive, distracting, disruptive and in some cases business ending.

Do you need help with your independent contractor agreements? We can help.

Contact us today if you require any assistance with preparing or reviewing your commercial contracts.

(c) Progressive Legal Pty Ltd – All legal rights reserved (2020)

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