The most important thing you can do as a contractor is to establish an actual contract with your client. Effective communication is essential for a project to run smoothly. The process of hashing out a contract forces you to communicate openly with your client about topics most people seem too squeamish to bring up in normal conversation. Money and failure seem to be taboo subjects, but the finality of a contract makes it easy to discuss delicate financial matters and what happens if anyone fails to live up to their side of the bargain. Every client you encounter is going to be a bit different, so use your judgment in determining the best approach for payment options and source code protection.
To know more about writing up a contract and to ensure that your client pays up, read this article.
http://axcs.blogspot.com/2006/10/contract-coding.html
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