6 Ways To Manage Risk While Choosing a Website Development Provider

So you have decided to venture into the online field and have finalized plans for creating a website or a blog? web_development_service_provider

Now you need to choose a website provider. I will provide some tips below which should be kept in mind while selecting a developer for your maiden online venture.

This would ensure that you do not get burnt at the hosting.

Some important points to be kept in mind include:


1.     Nature of Contract

The industry mostly works on two contract formats – Time and Material or Fixed Price Contracts. In the Time and Material version, the developer is paid on an hourly basis.

This works best if the scope is not clear but if the scope is clearly defined , the fixed price format is better as you get a set price with a list of deliverables but bear in mind that fixed price contracts can be disputed if both parties are not in agreement over the scope so each party should be ready for a bit of flexibility and leverage.


2.    Contracts and NDA

One should get the contracts and NDA (non-disclosure agreement) prepared by an attorney or use a third party arbitration system like Guru or Elance. The NDA will ensure protection of intellectual property.


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3.    Advance Payment and Milestone based payments

The general rule of the web industry is that a certain amount is taken as advance payment and the rest is spread over milestones where the work is shown to the client on the developer’s server and code is transferred when final payments are cleared. One should define these in the contracts and agreements.

This ensures that risk is spread and any issues are sorted out between the milestone deliveries.

For Time and Material contracts, you can limit the advance payment to two weeks to see how the work progresses and can then decide on future arrangements. This ensures that risk is limited.

The final payment is made and the vendor transfers ownership of the application and all code to the client. This is a very solid, technique balancing risk.


4.    Hidden code


Some developers keep a hidden kill switch in their code to protect their payments. One should ensure that this is mentioned in the agreement that this would not be the case with your project as it can lead to blackmailing issues later on.


5.    Using PayPal and Credit Card for payment.

If you are using PayPal or credit card for payment , then if an issue arises later on , you can always contact the payment providers as they can act as arbitrators in case of a dispute. So, one should route payments through them. I use paypal to accept payment on my coupon blog which reviews yahoo small business coupon and midphase coupon discounts.


6.    Vendors who disappear


Freelancers tend to be cheaper but they also carry the risk of vanishing overnight after the advance is paid. One should be careful and carry out due diligence and client reference checks. The best bet is an established provider with verifiable references.

Freelancers normally disappear if they have bitten more than they can chew. One should be careful.

If you keep in mind the above points raised, you can find a dependable provider that will work with you to turn your dreams into reality.





Kelly Jones writes for www.ocnissanirvine.com.  She writes for blogs as a hobby and enjoys exploring new avenues in the social sphere. Her interest encompasses a wide range of subjects ranging from technology to cooking and traveling.

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