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The best insurance against a problematic computerization project is a strong written contract. Lawyers recommend that it include at least the following:

  • The basics--the who, what, when, and where to make the contract legally enforceable.
  • A detailed description of the scope and nature of the work. If possible, set a deadline.
  • A provision for progress reports or development updates. Think about breaking the project into phases for payment purposes, with milestones that enable you to monitor quality before everything is cast in code.
  • A compensation schedule specifying the consultant's hourly rate or flat fee, along with terms and conditions of payment. Reserve part of the total amount until the job is finished and everything is working to your satisfaction.
  • A confidentiality provision making it clear that any proprietary information the consultant sees, such as customer lists and financial records, will remain confidential.
  • Copyright language.
  • A provision for free upgrades for a specified period of time if the project involves software that is later improved or modified.
  • Designation of decision makers.
  • A warranty, stating that the work shall be free from defects in workmanship and materials, and shall conform to the project's specifications. A one-year warranty is reasonable, but some vendors try to start at 90 days.
  • A flat prohibition against secret code, usually a "time bomb" or time lock, that could disable your system.
  • A provision for operators' manuals and training, if needed, before final payment is made. Also, specify the cost of follow-on training and service.

A Field Guide to Computer Consultants

How to Know Your Nerd
Nowhere is the term consultant more ambiguous than in the computer field. You're talking about countless thousands of people serving an industry of vast complexity. How could there not be confusion? But for a company looking for outside expertise in office automation, it helps to think in terms of four broad categories:

  • Independent consultants. In their purest form, independents are objective advisers. They identify the best solution for clients, regardless of which vendor supplies it. Many independents fly solo, while others work in companies with up to 100 people or more. Primarily, they serve small and midsize companies. Some independents specialize in specific industries--health care, say, or trucking. Others are generalists. In their own right, independents might be software programmers, networking experts, or hardware specialists--or occasionally, all three. They often begin with a "needs analysis" to help a customer design and fine-tune a computerization project. Once a strategy is set, the consultant either does the work himself or herself or recommends vendors who can. He or she might also help solicit bids, handle contract negotiations, and manage the overall operation, acting temporarily as a client's information-technology department.

    Independents by definition have no vendor affiliations, and staying current on technology can consume half their time. "We have to be familiar with all the available packages," says Steve Epner, president of BSW Consulting Inc., in St. Louis, and founder of the Independent Computer Consultants Association. "We try to put our clients in a position where they can't be wrong."

    These folks don't work cheap. Sometimes they bid on jobs on a flat-fee basis, but they prefer hourly rates, and experienced consultants command between $80 and $200 an hour, depending on their skill level and the local economics. "Usually, a company will interview a few people and compare rates," says Debbi L. Handler, a consultant in Sausalito, Calif., and vice-president of the Independent Computer Consultants Association. "If you're the first interview, you're the one that knocks the guy out of his chair when he hears that you bill $150 an hour."

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