As a contractor, one needs to be aware there are people willing to take advantage of agreements assuming the lack of a paper trail will cover themselves. This is simply not the case if you keep meticulous records and emails that verify (via thank you’s or meeting details) agreements.

For the first time in ten years, I was forced to take a client to collections. This individual was arrogant in his refusal to pay for the services rendered, but with the use of email, phone records, meeting notes, proof of work, payment details, direction and accurate time lines… I was able to prove our agreement.

A written contract is always preferable as it serves to protect both parties. however, failing that, the onus is on the business owner to be vigilant with his records and correspondence. You need:

1) Evidence in Writing (emails and meeting notes will suffice if accurate)
2) Proof to substantiate agreements (verification emails between client and contractor will suffice)
3) Proof of work provided and client direction in writing to substantiate your Oral (handshake) agreement.

Shared files, screen shots and any other information that clearly defines agreed process is critical.

Good luck to you all. These are hard times and a number of unscrupulous people will always do their best to get around the law.