Good client relationships result from many things. But one way to help ensure success is going through the contracting process.

For some reason, the word "contract" is becoming a dirty word. It conjures up images of teams of lawyers clad in long dark robes bent over a steaming caldron muttering phases in Latin. "Res ipsa loquiter. Toss out the warranty of merchantability. Add a limitation of liability." After all the muttering, the smoke clears—revealing a long scroll with microscopic print that nobody understands.

Let me put in a good word for contracts. Contracts are private agreements, voluntarily entered into by companies and individuals. These voluntary private agreements are legally enforceable.

Imagine the chaos of a system without contracts and rules. Actually, you don't have to imagine it—just look at the former Soviet Union and eastern bloc countries.

Enforceable contracts are one of the bedrocks of our economy. Contracts are one of the three fundamental reasons why our system of commerce flourishes.

And contracts are nothing new. Contracts are mentioned in the Bible and other ancient texts.

Some people mistakenly think that if they don't write out the terms and conditions of a contract, no contract exists. Wrong, wrong, wrong. Contracts can be created verbally, in writing, or by actions. When people fail to "memorialize their intentions in writing", as law professors like to say, their actions and words create the contract. It's just harder without a written contract to know the true intent of the persons signing it.

Your contract is your friend. Think of it as a process, a relationship—not a one-time-only transaction.

Contracts have three phases: negotiation, composition, and implementation, otherwise known as the following:

Getting to know you (negotiation)

How long this stage lasts depends on the people involved and the type of transaction. It is the most important part of the contracting process. It is really a vetting process during which, if used properly, participants learn what each other expects from the relationship, what each side considers important (both stated and unstated), and what each side needs.

Needs and expectations may not be obvious. For example, you might assume that a company that asks you to develop customized software just needs customized software. In reality, the company's assumptions could be wrong. The company may not need customized software. It might need you to train staff or to analyze and revamp its internal process.

Time spent forming a contract is never wasted time. It is an excellent way to learn what it will be like to work with the company. If the company representative changes his or her mind continuously or is constantly overruled by the boss, then you know that the contract needs to spell out the final agreement in exact detail. It might need to include a mechanism for change that compensates you for added costs and time in providing these changes, as well as provide a method for ending the changes. Trust your intuition and include contract language that you believe will be necessary.

The company representative with whom you are working may have more subtle needs, like a quick turnaround to show the boss that he or she can get things done! Listen carefully and learn both the stated and unstated needs. If you can fulfill both types of needs, you will have the company as a client, as well as the company representative as a client. That's worth remembering in today's environment where people change companies so often. Just think of the opportunities if the company representative goes to another company and recommends you there.

Getting to know you better—and in writing (composition)

This is the stage when you put pen to paper and write out the terms of the agreement. While you might not need a team of black-robed lawyers and a caldron, consider getting some legal review. It is much cheaper to do it right than to undo it later on.

Your goal is a clear, unambiguous document. Rather than create a new contract for every client, you might want to develop your own form contract that you can change as needed.

If your client presents you with a form agreement, read it carefully. Sometimes clients will say, "This is our form, and we can't change it." However, remember that every term of the client's form agreement can be changed—that's why we have word processing! And if they won't, do you want to work for them?

Satisfying your client (implementation)

This is the stage where the contract is implemented. Ideally, at this point you will have a good written contract where each person knows what is expected and what to do. If that is the case, toss the contract in the drawer and complete the project.

Of course, there are the less-than-ideal situations. In those instances, a good contract can really save a client relationship. Suppose that you negotiated the contract with one company representative, and, as is often the case, another company employee works with you to implement the contract. Likewise, you may turn over contract implementation to another person on your team. You can avoid many problems caused by simple misunderstandings by being able to turn to the contract for clarification.

If there is a magic formula for good client relationships it is this: Do unto others as you would have done unto you.

In addition to the contract, do the things your mother taught you:

• Return calls promptly.
• Make yourself available to clients.
• Answer questions, and explain why you are doing things the way you are.
• Provide good quality work.
• Deliver the work early.
• Respond to client concerns quickly.

In short, "mother" your clients. And, of course, have a good contract!