# Red flag checklist: score a new inquiry before you quote it

Use this the moment a new inquiry comes in, before you draft a proposal. Score only behavior you actually observed. A flag needs a specific fact (a delay you can point to, a phrase they actually said, a question they actually dodged), not a feeling.

## The six signals

Check each box only if you have a specific example to back it up. Write the example next to the box, in your own words, so you can look back at it later.

1. **Response time changed after a routine question.** They were quick to reply while you were still selling, then went slow (two or more days of silence, or a string of short "will get back to you" replies) once you asked something ordinary, like a scope clarification or a start date.
   - Example: ___________________________

2. **Payment timing language was vague or deflected.** You asked when or how they pay and got a non-answer: "we'll sort that out," "our finance team handles it," a change of subject, or a flat refusal to discuss a deposit.
   - Example: ___________________________

3. **Scope answers were evasive or non-specific.** You asked what "done" looks like, or what's in versus out of scope, and got a vague answer twice in a row, or an answer that kept growing without ever landing on specifics.
   - Example: ___________________________

4. **They badmouthed a prior vendor.** Unprompted, they told you in detail how the last person who did this work "screwed them over," was "useless," or "didn't understand" them, with no acknowledgment of their own role in what went wrong.
   - Example: ___________________________

5. **They haggled on price before signing anything.** Before you've sent a contract, they pushed back on your rate, asked for a discount "to get started," or tried to negotiate scope down for the same price, more than once.
   - Example: ___________________________

6. **No decision-maker or approval process was named.** You asked who signs off and either got no clear name, or got told "it depends," or the person you're talking to admits they need someone else's sign-off they haven't mentioned until now.
   - Example: ___________________________

## Tally

- **0 flags: green.** Proceed to a normal proposal.
- **1 flag: yellow.** Proceed, but note the flag in your log and watch for it during the engagement.
- **2 or more flags: red.** Do not send a proposal yet.
- **Any single flag on signal 2 (payment timing) is red on its own**, even with zero other flags. A client who will not commit to payment timing before work starts rarely commits to it cleanly once work is underway. Treat it that way regardless of how good the rest of the conversation felt.

## The pause rule (fill this in once, before any inquiry is live)

Write your own rule here while no deal is pending. This is the rule you follow later, not the rule you invent in the moment:

> When this inquiry scores ________________ (for example: "2 or more flags" or "any payment-timing flag"), I will ________________ (for example: "not send a proposal until I've had a clarifying call" or "not send a proposal until the payment-timing concern is resolved in writing") before any proposal goes out.

Why write it now: once a deal feels real and wanted, the sales call already happened, the time is already spent, and asking an awkward follow-up question feels like it might kill the deal. All three of those pressures push toward skipping the check. A rule written down before the deal existed doesn't have that pressure on it. It only has to be applied.

## Log line (add to whatever tracker you already use)

Date | Inquiry | Flags hit | Score | Rule applied | Outcome
---|---|---|---|---|---

# Contract terms: cap the loss to one milestone

These terms exist to cap your downside: if a signal gets missed and a client does go sideways, the most you can lose is one unpaid milestone, not the whole job.

## 1. Deposit

Set your own default percentage once, then use it on every new, unproven client.

- **Accepted range for a new client: 25 to 50 percent of total project value, due before work starts.**
- A client you've worked with before, with a clean payment history, can get a lower deposit or none, as a one-time exception you grant on that specific contract. Don't change your default because one past client was fine.
- Sample clause:

> A deposit of [X]% of the total project fee is due before any work begins. Work will not start until the deposit has cleared. The deposit is non-refundable once work has started, and is credited against the final invoice.

Your default: ____ %

## 2. Milestone schedule

Break the project into milestones that match its actual shape, not a generic 3-part split pasted onto every job. A one-week job might have two milestones (deposit and delivery). A three-month build should have one roughly every two to four weeks, tied to a concrete deliverable the client can see and approve.

- Each milestone should be payable on a deliverable, not on a calendar date alone ("30 days in" invites disputes about what should have been done by then).
- No milestone should represent more of the remaining project value than you're comfortable losing if the client disappears right after it's delivered.
- Sample clause:

> The project is billed in the following milestones: [list milestone name, deliverable, and percent of total fee]. Each milestone is invoiced on delivery and is due within [X] days. Work on the next milestone does not begin until the prior milestone's invoice is paid.

Your default split: ____________________________

## 3. IP and rights transfer on payment

Decide once whether this clause is on every contract by default, or only when asked for.

- Sample clause:

> All deliverables, including source files, designs, and code, remain the property of [your business name] until full payment has been received. Upon receipt of final payment, all rights to the completed deliverables transfer to the client. Work delivered against unpaid milestones remains the property of [your business name] and may not be used, published, or distributed by the client until paid in full.

Default for this clause: on every contract / only on request (circle one, write your actual default here): ____________________________

## 4. Scope and change-order process

Name the process in the contract itself, so a scope conversation later points back to agreed language instead of becoming a fresh negotiation.

- Sample clause:

> The scope of work is defined in [attached scope document / Section X above]. Any request that adds features, deliverables, or revisions beyond this scope will be quoted separately and requires written approval before work on it begins. Approved change orders are billed at [your hourly or project rate] and are due according to the payment terms above.

Your rate for change-order work: ____________________________

## 5. Before any contract goes out: checklist

- [ ] Deposit set at your default percentage (or a stated one-time exception, named here: ____________________)
- [ ] Milestone schedule matches this project's actual scope and timeline
- [ ] IP/rights-transfer clause included if it's your default
- [ ] Scope and change-order process named, with the change-order rate stated
- [ ] You have read the complete terms once more before anything goes to the client

# My defaults: this shop's actual settings

This file holds this shop's real, chosen numbers, not a generic range. Fill it in once, during Phase 1, while no inquiry is pending. Every later phase, in this session and in any later one, reads the values from here instead of asking again or relying on memory of the conversation that set them. When a default changes, edit this file in place; the edit itself is the update, nothing else needs to change.

## Pause rule (set in Phase 1 step 2)

My pause rule: _________________________________

(Write the actual rule in plain words, for example: "2 or more flags means no proposal without a clarifying call" or "any payment-timing flag means no proposal until it's resolved in writing." Phase 2 step 7 reads this line and applies it exactly as written.)

Date set: ____________ Last changed: ____________

## Contract defaults (set in Phase 1 step 3)

- Deposit percentage for a new, unproven client: ____ %
- Standard milestone split: _________________________________
- IP/rights-transfer-on-payment clause included by default: yes / no

(Phase 3 step 11 reads these three values before drafting any contract. A one-time exception for a single deal is written on that deal's contract only and is never copied into this file.)

Date set: ____________ Last changed: ____________

## Change log

Keep a short record of when a default changed and why, so a later session can see the history instead of just the current value.

Date | What changed | Old value | New value
---|---|---|---

# Escalation playbook: a signed client has gone quiet

Use this only after a client who signed a contract (and ideally cleared the screen) has stopped responding mid-project. The sequence below is staged on purpose: each message is firmer than the last, and you stop the moment they reply.

Before sending anything: confirm the amount owed, the milestone or deliverable at stake, and the client's name, from your own contract or invoice. Never guess a number.

## Stage 1: initial follow-up (day 1 to 3 of silence)

Tone: light, assumes a good reason, no accusation.

> Subject: Checking in on [project name]
>
> Hi [client name],
>
> Just following up, I haven't heard back since [date/last message]. Wanted to check the [milestone/deliverable] is still on track from your end. Let me know if anything's changed or if you need anything from me.
>
> [Your name]

## Stage 2: firmer follow-up (one week of silence)

Tone: still professional, names the open item directly, states the amount and the hold.

> Subject: [Project name]: invoice [number] still open
>
> Hi [client name],
>
> I haven't heard back since my message on [date]. Invoice [number] for [$ amount], covering [milestone/deliverable], is now [X] days past due. I'd like to get this resolved and the project moving again. Can you let me know a timeline for payment, or if there's an issue I should know about?
>
> [Your name]

## Stage 3: second firm follow-up (ten days to two weeks of silence)

Tone: direct, states a consequence that is true and you intend to follow through on.

> Subject: [Project name]: action needed on invoice [number]
>
> Hi [client name],
>
> This is my third message about invoice [number] for [$ amount], now [X] days past due. I haven't received a response to my last two notes. Until this is paid, I'm holding [the remaining deliverables / final files / the next milestone's work], as stated in our contract. Please let me know by [date, 3 to 5 business days out] how you'd like to proceed.
>
> [Your name]

## Stage 4: final notice (after stage 3's deadline passes with no reply)

Tone: formal, states the next real step, no more soft asks.

> Subject: Final notice: invoice [number], [project name]
>
> Hi [client name],
>
> This is a final notice regarding invoice [number] for [$ amount], now [X] days past due, for [milestone/deliverable]. I have not received payment or a response to three previous messages dated [dates]. If payment is not received by [date, firm], I will consider the contract in breach on your end and may pursue collections or small-claims action to recover the amount owed. All deliverables remain withheld until payment is received in full, per our contract.
>
> [Your name]

## Rules for every stage

- Draft the message, show it to yourself (or whoever approves it in your shop) before it goes out. Nothing here gets sent automatically.
- If the client replies at any point, stop the sequence immediately. Don't let a later-stage message that was already drafted or queued go out into a thread they've since answered.
- Withhold final deliverables and files until the outstanding amount clears, exactly as the contract's IP clause states.
- Pull the dollar amount, milestone name, and dates only from your own contract or invoice. Never estimate or round a figure you don't have on paper.

## Log every attempt

Keep this next to your inquiry log so you have a paper trail if this ever goes to collections or small claims.

Date sent | Stage | Channel (email/text/call) | What was sent (summary) | Reply received?
---|---|---|---|---

# Worked example: one inquiry, scored and routed end to end

This shows the whole screen run on a single real-shaped inquiry, from first message to the clarifying question that got sent.

## The inquiry

A prospective client reaches out about a six-week website rebuild, budget mentioned as "flexible." The first two exchanges go fast: they reply within an hour each time, friendly, ask good questions about your past work.

On the third exchange, you ask two routine questions in the same message: "What does a finished project look like to you, and how do you usually prefer to handle deposits and payment?" Their reply comes two days later and only addresses the first question, with a vague answer: "just something that looks modern and works well." The payment question goes unanswered.

You follow up once, directly: "No problem on the first part, happy to nail that down together. On payment, do you have a preferred structure, like a deposit plus milestones?" Another day and a half passes. The reply: "We can figure that out once we get going, it's usually not a big deal on our end."

Separately, earlier in the thread, they mentioned in passing that their last web developer "completely dropped the ball and ghosted halfway through," with no mention of anything on their own side that might have contributed.

## Running the checklist

Signal | Hit? | Evidence
---|---|---
1. Response time changed after a routine question | Yes | Went from under 1 hour to 2 days, then 1.5 days, right after payment was raised
2. Payment timing language was vague or deflected | Yes | Twice asked directly, twice deflected ("figure it out once we get going")
3. Scope answers were evasive or non-specific | Yes | "Looks modern and works well" given twice, no specifics even after a direct follow-up
4. Badmouthed a prior vendor | Yes | "Completely dropped the ball and ghosted," no acknowledgment of their own role
5. Haggled on price before signing | No | No pricing conversation has happened yet
6. No decision-maker named | No | The person emailing has said "I" throughout and hasn't mentioned anyone else needing to approve

## Tally

4 flags: signals 1, 2, 3, and 4. That alone is a red score (2 or more flags). Signal 2 (payment timing) is also a red flag on its own, so this inquiry is red by two independent tests.

## Applying the pause rule

This shop's Phase 1 pause rule, recorded in `references/my-defaults.md` before this inquiry ever came in: "Any payment-timing flag means no proposal until it's resolved in writing, in plain terms, not a vague reassurance." That rule applies here exactly as written. It is not being renegotiated because the prospect seems otherwise pleasant and the scope sounds interesting; the rule was fixed before either of those things were known.

## The clarifying question that was sent

> Hi [name], before I put together a proposal I want to make sure we're aligned on how payment works, since that's something I always nail down up front regardless of the client. My standard structure is a 30% deposit before work starts, then two milestone payments tied to specific deliverables. Does that work for you, or is there a structure you'd want to discuss first? Happy to talk it through on a quick call if that's easier.

## What happened next

The prospect replied within four hours agreeing to the 30% deposit and milestone structure without pushback, and confirmed a specific definition of "done" in the same message (a five-page site with three content revisions included). The payment-timing flag resolved in writing. The scope flag resolved in writing. The response-time and vendor-badmouthing flags were logged but not grounds to decline on their own, since the rule only required the payment concern to clear before a proposal could go out.

## Log entry recorded

Date | Inquiry | Flags hit | Score | Rule applied | Outcome
---|---|---|---|---|---
[date] | 6-week site rebuild, [prospect name] | 1, 2, 3, 4 | Red (4 flags + payment flag) | Held proposal, sent clarifying question on payment and scope | Resolved in writing, proposal sent with 30% deposit and milestone terms

Score the inquiry against six behavioral signals you actually observed, not a feeling: slow replies after routine questions, vague answers about payment timing, evasive scope answers, haggling before anything is signed, badmouthing a previous vendor, and no clearly named decision-maker. Zero flags is green, one is yellow, two or more is red, and any single flag on payment timing is red by itself.

A red flag is a specific, stated fact: a deflected answer about when they pay, a concrete delay pattern, an exact phrase about a prior vendor. A tone you didn't love or a hunch isn't a scored signal; only behavior you can point to counts.

Yes, for any client who hasn't paid you before. A 25 to 50 percent deposit, paired with a milestone schedule, means a missed signal only costs you one unpaid stage instead of the entire project.

Run a staged follow-up sequence keyed to how many days they've been silent: an initial check-in within the first few days, then escalating staged messages after that. Draft every message before sending it and don't send anything without reviewing it first.

A milestone-based contract with a deposit and an IP-transfer-on-payment clause means you've already been paid for completed work and haven't handed over final deliverables for unpaid stages, so a disappearing client costs you one milestone, not the whole engagement.

No. Decide the pause rule and deposit defaults when no deal is on the table, then apply them mechanically. The pull to make an exception is strongest for a client you already want, which is exactly when the rule matters most.