INDUSTRIES / PROFESSIONAL SERVICES

Their paper. Your margin.

Agencies, consultancies and practices win work on the client's contract. Which is where uncapped liability, assigned IP and acceptance "at the client's sole discretion" arrive, clauses that don't reduce your fee, they reduce whether the project was worth doing. Vern scores each one against positions written from the MSAs you've already signed.

Northgate, Client MSA
Round 1 · 24 clauses · 6 flagged
62 NEGOTIATE
CLAUSE PLAYBOOK DRAFTING
8.1 Liability
Uncapped · breaches L-04
12 Weak
11.2 Intellectual property
Assigns your background IP too
24 Adequate
6.3 Acceptance
Client's sole discretion, no test
38 Weak
5.2 Payment
60 days, no right to suspend
48 Strong
14.1 Non-solicitation
24 months, both directions
52 Adequate
TWO SCORES, NEVER AVERAGED 1.0 CREDIT
A CLAUSE CAN BE WELL DRAFTED AND STILL UNACCEPTABLE
The documents
Client MSAs and SOWs
Where margin goes
Liability and IP
Playbook from
MSAs you have signed
Two playbooks
MSA and SOW
The six that decide the economics

Where a profitable project stops being one.

These are the positions we'd draft first. Yours will differ, that's the point of writing them down.

L-04

Limitation of liability

THEY ASK FOR

Unlimited liability, or a cap so high it isn't one, with indirect losses left in.

YOU'D ACCEPT

2× the fees for that engagement, mutual exclusions, and a hard floor of 1×.

On a £60k project, uncapped means the downside is unrelated to the upside. This is the one clause worth losing a deal over.

IP-01

Intellectual property

THEY ASK FOR

Assignment of everything created, which quietly includes the frameworks you reuse.

YOU'D ACCEPT

Assignment of the deliverables, an explicit carve-out for background IP, licence for the rest.

Sign this twice on the same methodology and you've sold the same asset to two clients.

A-02

Acceptance

THEY ASK FOR

Sign-off at their sole discretion, with rework until satisfied and no defined test.

YOU'D ACCEPT

Acceptance against written criteria, deemed accepted after a stated period, rework scoped.

An undefined acceptance test is an unpriced obligation. It is where fixed-fee projects go to lose money.

P-02

Payment terms

THEY ASK FOR

Sixty or ninety days from invoice, with invoicing only permitted after acceptance.

YOU'D ACCEPT

Thirty days from invoice, milestone billing, and statutory interest preserved.

Chained to an undefined acceptance test, payment terms stop being a date and become a hope.

One negotiation · three rounds

Three rounds, two credits, one signed MSA.

The interesting part isn't the first review. It's knowing what moved, and what appeared, in the version they sent back.

Their MSA, as received 62 NEGOTIATE 24 clauses · 6 flagged · 2 escalations
WHAT VERN FLAGGED
Liability uncapped, breaches L-04 outright
IP assignment reaches your background methods
Acceptance at their discretion, no defined test
Payment at 60 days with no right to suspend
HOW YOU'D PLAY IT

Two of the six are escalations, so the sequence is obvious: liability first, IP second, and the payment ask goes in as the thing you'll trade. The suggested wording for each is in the review, your delivery lead sends the redline the same afternoon.

One deal, start to signature, three reviews 2.0 credits
PLAYBOOK ONE
The MSA, signed once, lived with for years

Liability, IP, confidentiality, term and termination, insurance, non-solicit. Argued hard once, then reused on every engagement with that client.

L-04 capIP-01 background IPT-03 terminationN-01 non-solicitINS-02 cover levels
PLAYBOOK TWO
The SOW, where the money actually goes

Different arguments, so a different playbook: scope boundaries, acceptance, change control, rates and expenses, dependencies and the assumptions that let you re-price.

A-02 acceptanceCC-01 change controlSC-02 scope limitsR-05 rate cardD-01 dependencies

Splitting them matters because an SOW that scores well against MSA positions tells you nothing useful. Both are set up in the same week, from contracts you've already signed.


Other sectors

The method is the same, whatever it is you sell.

What consultancies ask us

The fair objections.

Our clients are enterprises. They won't move.

Often true on the MSA, rarely true on the SOW, and knowing which of the six you can't win is worth as much as winning them. You stop spending goodwill on the immovable clause and spend it on payment terms instead.

We already have a solicitor we like.

Keep them. Vern is the first pass so their hours go on the two contracts a year that deserve a lawyer rather than the twenty that don't. Several of our customers had their solicitor help write the playbook.

Can each project lead run their own reviews?

Yes, and that's usually the point. Give seats to the people who negotiate, and let everyone else forward the document from an approved address, no seat, no licence, same review back.

Does it work on our own template?

Yes, and that's the more useful direction. Your MSA becomes the baseline, so an inbound redline is scored as movement away from what you wrote rather than judged in the abstract.

What about DPAs and security addenda?

Reviewed like anything else, against positions on sub-processing, breach notice windows and audit rights. The commitments in those documents are the ones most often signed by someone who can't deliver them.

We're fifteen people. Are we too small?

No. Fifteen people signing client MSAs with no in-house counsel is precisely the shape this was built for, and the package is sized for your volume rather than a tier you'd grow into.

Send us a client MSA you have already signed.

We'll draft your liability and IP positions from it, then score a live one against them.