Managing contractors

Contractor should have everything they need to know in the development communication software (DRM). Here is the template which should live in on one page. See also how to use Redmine for team development for an example as using a DRM.

Cases process

• Project manager create a new case in the DRM with the status 'Quote'.
• Each contractor receive an email to know about this new case.
• Contractor provide a quote to Project manager by email.
• Project manager select a contractor and assign the case to him with the status 'New' and fill the 'Estimated hours' and 'End date' form.
• Contractor undertake the task and change the status by 'In progress'.
• At job completion, contractor change the status of the case to 'Dev complete'.
• Project manager test the development in UAT.
• If it need back and forth between project manager and developer, project manager change the status to 'In progress' and add a comment describing the problem. Contractor will fix it and put the case to 'Dev complete' again.
• Project manager put the case to status 'OK production' when the development is ready.
• Project manager push the code in production, test and change the status to 'Resolved'. The case is closed.

Invoicing process

Every month contractor should send their invoice to project manager or CFO. In any case project manger need to approve those before payment. All your software should use an unique project number. Contractor invoice must include this unique project number which allow CFO to allocate this expense against the correct project.

Each contractor need to track his time against a task. Sometimes it can be quick modification without any tasks. For this, create a generic case called 'Generic development'.

For each issues, project manager will decide the type of invoicing method which can be 'Fixed quote' or 'Hourly basis' which should be a field in your DRM.

Fixed quote

Each time is possible, it's probably better to work with a fixed quote. Contractor engage himself to succeed to his task in the defined time to spent and due date.
The time to spent (and so amount) will be entered in the 'Estimated hours' filed for each DRM issues. The deadline will be entered in the 'Due Date' field.
If contractor do not succeed to deliver the promise at the due date, penalties will apply on the defined amount at the following rates:

• 10% if over 1 week,
• 20% if over 2 weeks,
• 30% if over 3 weeks.

Hourly basis

When it's too difficult to work with a fixed quote, you may want to work on hourly basis (like for solving a bug). In this case a maximum spent time and a deadline will be fixed.
Estimated time will be put in the 'Estimated time' field. If contractor do not succeed to solve the issue in the given time, then he will put a comment in the issue explaining how did he use his time, his actual position and he estimate how long for him it will take to solve the issue. Then project manager will answer to the case.

Contracts

The contractor contract should include the following elements:

• revision
• don't allow contractor/company to give {COMPANY} and especially his clients as references
• get them an to have an insurrance
• not working full time for the same company (for some contries)
• If necessary, in the contract, agree to a deadline and a numbers of hours if contractor fail, then apply penalties, 10% per week, 2week 20%, 3week 30%

See: Contract template.