Can I ask your opinions on this contract?

[PhilomenaB]

Wondering how 'normal' it is.

I work as a consultant (freelance) for a small consulting company. Clients pay upfront for a number of hours consulting. There is no time limit to when they use my input.

I am paid a percentage of what they have paid upfront (around 50%) but only when they use me.
The client and myself work together to decide when they want this consulting but we try to establish a regular meeting.

I am only paid once I have done the work with them (I invoice each time.) If they decide not to take all the time they have paid for, I don't get paid.

I'm wondering if this is normal practise? I've allocated my time to the client in theory, and part of me feels I should be paid my percentage of their fee whether they use all of the hours they have paid for, or not.

I enjoy the work and don't want to create bad feeling by raising this.

Has anyone else come across this?

If you are a freelancer you will only get paid for the time you actually work. That is completely normal.

"I am only paid once I have done the work with them (I invoice each time.) If they decide not to take all the time they have paid for, I don't get paid."

I'm assuming from the above that you mean, for example, if they allocate you 10 days consultancy but you only work 5, you only get paid for 5. Not that they don't pay you at all. That would be correct unless you have something written into your contract that clearly states when you commit to 10 days you are paid for 10 days regardless of whether you work them or not.

As a freelancer though you are "free" to offer your services to other companies so you could mitigate the risk that way (I know you already know that!!)

Well, yes and no!

The client has paid whether they use all the time they have paid for and the organisation retains that fee including unused time.

I allocate my time in my week or month to that client, which means I'd be potentially turning down other work from other sources. If the client decides not to use me for the amount of time they have paid for in advance, I don't get paid, but I may have refused other work in the process.

For similar situations I use a retainer clause in my agreements. Essentially a payment that recognises I have included them in my schedule. It is a flat rate fee which I charge in half days. That said it isn't always appropriate to charge, and I will personally only charge it where clients have booked a week or more (or every Friday for a month etc) and have then reneged on the agreement.

You need a clause that says they must book your time xx days/weeks/months in advance.

I think you'd be entitled to tell them you have a prior booking if they ask for your time at short notice.