A contract is a legally binding agreement between two parties, I.E a company and a client.

It is vital to draw up a contract when starting a new project, this ensures that both parties achieve their desired outcome I.E the companies are paid fairly for the work completed, and the client receives the intended work specified.

Unlike contacts in business like law firms, in the interactive media industry no two jobs are ever the same. Clients require different specification and a contract is established so both parties come to a mutual agreement on how the task in hand should be handled.

Many different element make up a contract here are a few examples:

Terms and conditions – These are the specifications of how a company may go about their trading with clients, they lay down a set guideline that must be followed.

Privacy Policies – This is how the companies store their information, whether it is personal information or design specs. All this information is covered by the data protection act.

The Design Brief – This is the initial planning of the product, this will be show to the client an if approved creation of the product can commence.

Non-disclosure agreement – This is a contract that protects the information being passed between two clients, both parties agree to keep the information confidential.  

Costing and scheduling – This is amount of time each task will take and when each task will be stared and be complete. This helps work out how much the client is required to pay.

Risk Management – Any job in the interactive industry involves risk whether it is setting up tungsten 800w lights to viewing a computer screen. This is often included in the price quoted to the client this is to make up for time lost due to unexpected mishaps. This is often known as contingency time.

Outsourcing – This is where you subcontract a company to do some work for you. For example if you are over deadline and need some extra help constructing I.E a boat you may outsource the making of the sails to another company. You may even subcontract to another company to save money e.g. pay them less then you would to do it.

Penalties – These are put in place to ensure the design company are paid of time. This is to ensure fairness e.g. if a clients payment is late by 10 days a 20% penalty is added onto the final price.

Intellectual property – This is something created by an individual; it is a creation of the mind. This type of property can be protected from being copied by different acts such as the copyright act.

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