Consulting and contracts

I suppose there are many people here on coderanch who do technical consulting full time or part time.
I wanted to know what techniques do you people use to ensure that such employment will be fair to you?
For example, how do you ensure you get paid? How do you ensure that your client remains within reasonable limits of what has been agreed?
Do you just trust their word?
Or do you rely on contracts and keep a lawyer handy all the time?

I have usually relied on 3rd party escrow services in the past, and found them good enough for remote consulting/freelancing. But they don't seem very convenient (or friendly - smacks of mistrust) when face-to-face consultation and onsite work are involved. Ideally, I would like something midway between blind trust and total mistrust. Anybody have some advice?

Thanks
Karthik

In Sydney, I use a third-party umbrella company who charges a very small % for their services. I go under them as Pay as you go (i.e. as their employee). Never had any issue.

arulk pillai wrote:In Sydney, I use a third-party umbrella company who charges a very small % for their services. I go under them as Pay as you go (i.e. as their employee). Never had any issue.

Hi Arul, thanks for your reply! I wasn't aware of this umbrella company concept earlier, but after a little researching, it seems to be quite promising and popular, atleast in other countries. Will keep an eye out for something similar here. Thanks!