I recently read a blog post on FreelanceSwitch entitled “When You Need to Subcontract,” that prompted me to share my own perspective regarding this subject since I’ve been engaging subcontractors for application development and database engineering projects for the past several years.

Fortunately, I’ve known a number of highly skilled IT professionals for a number of years that I frequently engage and we have established an excellent business relationship. However, when I need to go outside my talent pool I perform my due-diligence, which includes reviewing each applicant’s resume and portfolio very carefully, and if I’m impressed with their credentials and experience then I’ll schedule a phone interview. The phone screen consists of a series of questions intended to further ascertain their technical aptitude and business acumen. One thing that is often overlooked that I deem extremely important is evaluating their phone etiquette as well because they will often need to communicate with a client over the phone. If they pass this initial screen then I’ll schedule an in-person interview.

During the more formal interview I share with them the particulars of the project and some of my internal processes in an effort to convey that they’re dealing with a savvy businessman. I acknowledge that an agreement has been executed and an initial down payment has been received that covers the first milestone and it’s respective deliverables. In addition, I’ve included a provision in the contract that states if a client fails to pay when the next milestone is met then all work is suspended. This stipulation is written into the agreement in order to prevent the both of us from being burned.

If we both feel that it’s a match then I have them sign a “Work For Hire Agreement,” complete a “W9”, as well as, set them up in Basecamp, provide them with access to my development environment, and issue them a company email address. Lastly, I provide them a token payment as a matter of good faith, and pay them every two-weeks until the project is complete.

Furthermore, I firmly believe that anyone operating a freelance business isn’t going to dismiss out of hand an opportunity to work on a challenging project simply because it’s contract work or the ridiculous premise that subcontractors are not properly compensated. If they’re dealing with a reputable professional who understands business then the cost for engaging their services should have been built into the price. Therefore, as long as they’re appropriately compensated, able to work remotely and empowered to manage they’re portion of the project then where’s the downside?

Again, I’ve been managing these types of efforts for nearly 8 years and certainly there have been some hiccups along the way, but I’d rather engage a qualified freelancer on a contractor basis then loose out on a potentially lucrative business deal. I think it really comes down to fair play and if both parties conduct themselves as honorable professionals then it’s a win-win that also has the potential to develop into a long-term partnership. However, there is no shortage of IT professionals needing work so if they fail to perform or produce then pull some more resumes…