Every day, some
workers on vWorker win arbitrations and unfortunately other lose. A decent number are like "undefeated champs" and
win arbitration every single time they go into it. But others struggle and lose every single time.
So what's the difference between the two groups? And how do you make sure you're one of the "
champs" in arbitration and not one of the "chumps"? Fortunately it's very easy, with the following tips.
Part 1 of this article talks about the best ways to do work before the arbitration even begins. Part 2 (published next month) discusses how to conduct yourself once arbitration begins.
Before Arbitration
80% of arbitrations are decided based on something that happened before the arbitration itself ever started. So the most important thing you can do to win an arbitration is to work professionally and competently with the employer. This might seem obvious, yet we see the same mistakes being made over and over again. Here's how to avoid making them.
- Clarify vague contract terms…
- Ask questions:
If you don't understand something in the contract – ask. Ideally, you should ask before you place a bid on the project. If a contract term is vague and you have already accepted the project, you are putting yourself at risk. That vague requirement could get clarified to be a lot of work, which you did not anticipate. Also, asking questions is a great way to show employers that you have read their requirements and want to meet their needs.
- Pros and Cons:
If there are multiple possible implementations for the requirement, then inform the employer about the pros and cons of each. Don't just pick one (such as the easiest, the cheapest, or the one you're most familiar with). If you do then you take a big risk. If your choice causes problems for the employer, you will be responsible in arbitration. You may have to redo your work, or could even lose the arbitration. The employer is the one paying for the project, so make sure you give them the choice they are entitled to.
- Don't underbid:
The more you clarify the requirements, the better you can accurately estimate the time and effort the project will take. And that is the only way to accurately estimate how much to charge. Don't get in a situation of underbidding just to win the project. Workers who do this often get demotivated because they are working for too little money and don't do their best. If you do this and get into arbitration, the arbitrator won't accept it as an excuse for sloppy work or not delivering to the contract. You are responsible for estimating and bidding properly. If you have a continual problem estimating, then consider switching to pay-for-time projects so you can avoid this situation.
