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Freelance Contracts: A Guide To Getting Started | Pressable
Amanda Nadhir · 2018-12-19 · via Pressable

man sitting next to a computer at a desk reading contracts

Ask Your Favorite AI

Copy the link to a markdown format of this article for ChatGPT, Claude, Gemini, or your favorite AI.

Let’s face it. No one really likes creating contracts. Contracts are boring and they take the fun out of working freelance. But, they are absolutely necessary to protect the freelancer and the client!

Luckily, freelancers contracts are common, and they aren’t usually ultra-lengthy documents filled with legalese. These contracts can be a simple outline of your agreement with a few added protections (just in case).

Here are a few basic guidelines that will get you off to a great start when working on your first freelance contract.

1. Keep it Simple

Your contract doesn’t need to be as long as Apple’s terms and conditions to stand up in a court of law. In fact, unless you went to law school, you should avoid any complex statements that could lead to ambiguity. It’s also important to use consistent wording—don’t interchange “project” and “assignment,” for example. If there are any necessary terms that could be confusing, don’t be afraid to define them just to make sure that there is no chance of misinterpretation.

2. Outline the Scope and Milestones

This is probably the most important part of your contract. This is where you provide specific language concerning the scope of your deliverables and when they are expected. You can also specify milestones so that you can formally check in with your client throughout the project instead of leaving them wondering if you’re really on schedule.

Milestones are also helpful in case something changes. If you haven’t started a part of the project that the client suddenly decides to cancel, you didn’t do any unnecessary work.

3. Maintain Flexibility for Both Parties

It’s not rare for a project to change over time, but some clients decide that certain aspects of a project need to change completely when you are halfway through—and sometimes they expect you to do this extra work for free.

The solution to this is to specify upfront how these overall project revisions will be handled. If the client wants to alter the specifics of a deliverable that you have already started, make sure to specify how these changes are approved and how that they will pay for work.

A client might also start asking for services outside the original scope. The contract is the place to specify what to do when the client starts asking for more than you signed up for. This can be upfront and specific, stating a cost of additional work, or you can leave more flexible by asking for renegotiation if the scope reaches beyond the original agreement. This way, you can’t be taken advantage of, but the client also has the opportunity to renegotiate if necessary.

4. Specify Payment

There are a couple of things to keep in mind when it comes to payment: when and how you’ll be paid, and what happens if you aren’t.

Provide the client with a firm schedule of when you will send them an invoice and when they should pay you. This could be on a monthly basis or upon the completion of a deliverable or milestone. It’s also important to list acceptable methods of payment, like direct deposit, credit card, or a check.

You can also incorporate a fee if your payment isn’t on time, or if a check bounces (though be sure to check if this is compliant within your state). A trustworthy client will pay you on time, while a bad client might not sign on in the first place, saving you a headache or two.

5. Define Your Rights

Depending on the industry, clients want different levels of rights to your work. Most of the time, the complete copyright for the work is turned over to the client upon completion and compensation. This means that you, the freelancer, cannot reuse any part of the project in the future.

It’s also important that you keep the client in mind while you draft. For them to sign anything, they have to know that they are getting something out of it. While you want to protect your rights and avoid exploitation, remember that the client wants to be assured that you will turn in quality work.

6. Protect Yourself

Sometimes, things just don’t work out between you and a client. It’s important to include a termination clause in your freelancer contract so both parties how and when they can exit the agreement. This could include an amount of notice needed for termination and a “kill fee” that ensures you get some compensation for the abrupt loss of future income.

Many contracts include jurisdiction clauses that limit where you could be sued. You can also include a liabilities clause that will prevent your client from coming back and suing you for any more than the cost of the project. While these are rare situations, it’s better to be too protected than up the creek without a paddle.

Time to Review Your Existing Contracts

Every client relationship is different, so it’s important to draft a freelance contract that will fit your needs. Know this draft will probably change over time as your business evolves and you encounter unexpected issues with projects.

Final words of advice? Don’t be afraid to get in touch with a lawyer to make sure your contract is airtight. The last thing you need is your contract getting thrown out in a court of law because of some legal loophole.

Keep Learning: A Complete Guide To Starting Your WordPress Freelance Business

Amanda Nadhir

With over a decade of experience in the tech industry, Amanda's experience demonstrates her sales expertise. Her commitment to building, training, and guiding high-performing teams has been instrumental in driving Pressable's success. Amanda's extensive background in sales and marketing, coupled with her sharp business acumen, has made her an invaluable asset to the tech community. Her ability to identify and foster talent, combined with her passion for developing winning sales strategies, has propelled her to the forefront of the industry. When she's not expertly navigating the tech sales landscape, she loves spending quality time with her family, loves travel and adventure, lounging pool/beach-side, playing tennis, working out, and meeting people/making friends all along the way!