A frustrating business encounter prompted Jacek Antonelli to write a great post with good lessons for any builder to keep in mind. In RL I spend a lot of time advising and preparing contracts for builders of physical, RL buildings, but I’ve done no building in SL, so the window Jacek offered into the world of building in SL intrigued me. As I read her post, I realized that the lessons she described apply equally in SL and RL:
The lessons I have learned (or had reinforced) are:
- Make sure the client knows what he/she wants before you begin, and can communicate it to you. Otherwise, you are trying to hit an unknown and possibly moving target, which is quite frustrating! It also increases the likelihood that the client will pull something new out of their hat halfway through the process.
- If you are designing a build in addition to constructing it, treat them as separate processes, and charge separately. Planning the design before you build is good on general principle, of course, and treating them as separate processes helps enforce that. On top of that, it ensures that you will be paid for the design work, even if the client changes his/her mind about hiring you for the building. I also recommend charging as-you-go for each revision of the design if possible, for the same reason.
- If the client is full of drama before you are working for them, they will probably be even more full of it while you are. If drama, headaches, and frustration are what you are searching for, this is good news. On the other hand, if you value your sanity, pass up that client.
- Contracts protect both sides. Write up contracts for every step of the way, outlining the expectations of both parties, and what should happen if those expectations are not met. Have the client sign/agree to each contract, then stick to it.
I would just add this, as a corollary to point no. 1: Get an idea of the client’s budget early on and try to communicate to the client a general idea of what kind of compensation you will need to do the job. If you need US $15 per hour to make the job worthwhile to you, finding a gentle way to let the client know this early on may save you a lot of hours spent scoping and bidding the job just to have the client reject any bid you come up with. If you can tell about how much time a certain design feature will add to the work, it may help to communicate that to the client, too.
What about Jacek’s item no. 4? How should a contract work in SL? A RL contract has a bunch of benefits, but if it’s written well there are two main ones: (1) the parties to the contract can refer to the contract to get a clear understanding of their agreement and obligations, and (2) if one of them believes the other has not performed the responsibilities established by the contract, legal recourse may be available.
In SL, a written contract and the process of creating one can still provide a clearer understanding between the parties of their obligations. But what happens if one party decides not to perform the contract without an excuse? Does the other party have any kind of recourse?
SL has no courts, and Linden Lab doesn’t want to be in the position of trying to resolve the disputes or enforce the agreements of SL residents. So far as I know, there is no in-world analogue to the judicial processes that let a RL person sue for damages and then (if he or she wins) collect from the assets of the losing party. Even if we set up a third-party neutral dispute resolution system with binding arbitration, Linden Lab probably wouldn’t want to enforce its arbitration awards. What contract law applies in SL anyway? The state law of California governs the Linden Lab Terms of Service, but I’m not sure that means it applies to all facets of relationships between members in SL.
A contract for work in SL could be designed to be enforced under RL laws, but there are few SL economic circumstances that would justify the cost of enforcing a SL contract using the RL courts.
The lack of meaningful judicial recourse doesn’t necessarily mean that the contract would be worthless after a breach. The non-breaching party would at least have some moral high ground, and the party in breach would risk the harm to reputation that can come from breaking one’s promises. But there isn’t the same recourse to law that might be available to a RL contract, which means there’s probably less to deter breach of contract in SL than there is in RL.