Having a good, well-drafted contract in place with your client is critical to your long-term success as a freelancer, as this promotes a professional working relationship and helps to safeguard your business against any issues that might arise.
Now, life as a self-employed freelancer can be a bit overwhelming, and so it’s easy to overlook important details – especially in something like a contract.
You may just want to get it written up as quickly as possible, but this isn’t the best approach if you want to guarantee your rights are protected.
In this article, we’ll cover the basics, then break down the top five clauses that every freelance contract needs to have.
What is a freelance contract?
Very simply, a freelance contract is a legally binding document that details the terms and conditions of the project or the working arrangement.
Similarly to an employment contract, a freelance contract outlines important information and agreements so everyone involved knows what is expected.
Why do I need a freelance contract?
Freelance contracts might be legally binding, but they’re not legally obligated, and so why do you even need one in the first place?
Well, you don’t, but it’s much better to have one than not if someone tries to go back on their word or refuses to pay you for work you’ve completed.
You can think of it as a form of self-preservation, or a safety net to fall back on – just like any contract.
The key benefits include providing clarity for both parties, protecting your legal rights, and ensuring you get paid the correct amount and on time.
As alluded to earlier, having an actual contract also formalises the whole arrangement, meaning clients are more likely to behave in a professional manner (and less likely to try and push their luck).
Top 5 clauses to include
In order for a freelance contract to be worthwhile, you need to be as detailed as you can, focusing on the key areas you want to emphasise.
What are the most important, though?
1. Scope of work
The first clause should cover the general scope of the project, including the agreed deliverables.
Moreover, it should clearly define what you as the freelancer will do, what will be delivered, and also what isn’t included.
This makes sure you and the client are on the same page, helping to prevent misunderstandings and what is sometimes referred to as “scope creep,” which is when a project gradually gets bigger and bigger and expands beyond what was originally agreed.
Your client should also appreciate being able to see exactly where and how their money is being spent, so it gives them clarity as well.
2. Payment terms
The next thing you should do is outline how, when, and how much the client has agreed to pay you for your services, making sure to include details about the rates you are charging by day, hour, etc.
A 30-day payment window is fairly standard.
If you charge a flat fee instead, specify how much this is and what it’s based on.
Other things to include are your preferred payment method and details, as well as whether or not a portion of the fee needs to be paid up front.
3. Revisions
One area that’s easily overlooked is whether the agreed fee accounts for any amends or changes the client might request upon reviewing your work.
If not, you’ll need to provide information about the additional charges for these, and this ensures you’re not put in a position where you’re being taken advantage of, or asked to do more work for free.
4. Intellectual property
In a freelance contract, intellectual property (or IP) generally refers to the things you create, such as designs, logos, written content, code, or other original work.
This can get a bit complicated when you’re creating work for someone else.
An IP clause should explain who actually owns the work in a legal sense, as this helps to ensure your work is being used how you want it to be, and also prevents clients from being able to use your work without paying for it.
For example, a contract might say the client owns the final deliverables once the bill has been settled, while you retain the rights to any pre-existing tools or templates used in creating them.
5. Termination clause
Last but not least, it’s a good idea to put protections in place in case a client decides to cancel the project before the full scope of work is complete.
A cancellation clause guarantees you payment no matter what (so long as you hold up your end and complete the agreed work on time).
What’s more, you should also consider what will happen if you need to leave the project or can’t complete it due to unforeseen circumstances.
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