Step 4: Contract Execution

Duration: 5 minutes Owner: Sales Director (approval), Account Manager (execution) Tool: DocuSign, Notion, QuickBooks

Objective

Finalize contract, obtain signatures, collect deposit, and transition client from onboarding to active project status.

Inputs

• Approved proposal (client verbal or written acceptance)
• Final scope, pricing, and timeline
• Legal contract template
• Client company/individual information for contract

Activities

1. Contract Preparation (2 min)

Use Standard Service Agreement Template

Populate Contract Fields:

• Client legal name and address
• Project title and description (from proposal)
• Scope of work (reference proposal)
• Deliverables and timeline
• Total contract value
• Payment schedule and terms
• Signatures and dates

Required Attachments:

• Approved proposal (as Exhibit A)
• Design sketches or references (as Exhibit B, if available)
• Timeline/Gantt chart (as Exhibit C)

Key Contract Clauses:

• Payment Terms: Deposit due upon signing, milestone payments
• Intellectual Property: Design ownership transfers upon final payment
• Revisions: 2 rounds included, additional billable at $100/hour
• Cancellation: Client may cancel with 50% fee if work has commenced
• Delay Clause: Client-caused delays may result in storage fees
• Force Majeure: Protection for unforeseeable circumstances
• Governing Law: [State] jurisdiction

2. Internal Approval (1 min)

Sales Director Review Required If:

• Contract value > $5,000
• Non-standard terms requested
• New client (no prior relationship)
• Rush timeline with penalty clauses
• International client (different legal jurisdiction)

Auto-Approved If:

• Standard template used
• Contract value < $5,000
• Repeat client with good history
• Standard payment terms

3. Send for Signature (1 min)

• Upload contract to DocuSign
• Set signing order: Client first, then Kyndof (Sales Director or authorized signatory)
• Add signature fields and initial fields
• Send with email message:

Subject: Contract for [Project Name] - Ready for Signature

Dear [Client Name],

Attached is our service agreement for [project]. Please review and sign
electronically via DocuSign.

Once signed and your deposit is received, we'll immediately begin work and
schedule your first design review.

If you have any questions before signing, please let me know!

Best,
[Account Manager Name]

4. Post-Signature Actions (1 min)

Once Both Parties Sign:

• Download signed contract PDF
• Upload to Google Drive: /Clients/[Client Name]/Contracts/
• Upload to Notion client record (attach file)
• Update client status to "Active - In Production"
• Send contract copy to client via email
• Notify Finance to issue deposit invoice
• Create project kickoff meeting invite (client + Fashion Design + Operations)

Notify Internal Teams:

• Fashion Design: New project incoming, include creative brief
• Operations: Allocate production capacity, review timeline
• Finance: Issue deposit invoice, set up payment tracking
• IT (if needed): Create Slack channel for project collaboration

Outputs

• Fully executed contract (signed by both parties)
• Client status: "Active - In Production"
• Deposit invoice sent
• Project kickoff meeting scheduled
• Internal teams notified and ready

Success Criteria

• Contract signed within 3 days of proposal acceptance
• Deposit received within 7 days of contract signing
• Project kickoff meeting scheduled within 5 days
• All stakeholders (client, design, operations) aligned on scope and timeline

Payment Processing

Deposit Invoice:

• Send via QuickBooks within 24 hours of signature
• Payment methods: Bank transfer, credit card, check
• Payment terms: Due within 7 days
• Late payment: 5% fee after 7 days

Deposit Amount:

• Standard projects: 50% of total contract value
• High-value projects (>$10K): 40% deposit, 30% mid-project, 30% delivery
• Rush projects: 60% upfront (higher risk)

Common Issues & Solutions

Issue	Solution
Client delays signing	Follow up via phone, address concerns, offer contract review call
Client requests contract changes	Minor changes: Sales Director approval. Major changes: escalate to Legal
Deposit not received	Send reminder at day 5, pause work at day 7, escalate to Sales Director
Client loses unsigned contract	Resend DocuSign link, offer phone walkthrough if needed
Signature authority unclear	Request corporate resolution or proof of authority to sign

Red Flags (Escalate to Sales Director + Legal)

• Client refuses to sign contract (wants to work on handshake)
• Client requests removal of key protections (IP, cancellation, payment terms)
• Deposit payment bounces or is disputed
• Client unable to provide legal business name or authority
• Client requests net-60 or longer payment terms (cash flow risk)

Legal Escalation Triggers

• Contract value > $25,000
• International client (cross-border legal issues)
• Celebrity/high-profile client (publicity rights concerns)
• Client requests unlimited revisions or open-ended scope
• Intellectual property concerns (client wants to own design outright before payment)

Tools & Templates

• DocuSign: Electronic signature platform
• Google Drive: Contract storage (/Clients/[Name]/Contracts/)
• Notion: Client record status update
• QuickBooks: Invoice generation
• Standard Service Agreement template (maintained by Legal)

Handoff to Fulfillment

Project Kickoff Checklist:

• Contract signed by both parties
• Deposit invoice sent and payment pending
• Client record status: "Active - In Production"
• Fashion Design notified with creative brief
• Operations notified with timeline expectations
• Finance tracking payment milestones
• Kickoff meeting scheduled (Account Manager, client, Fashion Design lead, Operations coordinator)
• Slack project channel created: #project-[client-name]
• First design review date set

Next Process

Transition to: Order Management - Ongoing project tracking and client communication throughout production.

Onboarding Complete! Client is now an active Kyndof customer.