Without a proper contract in place, freelancing can quickly turn into a nightmare. Contracts provide clarity, protection, and accountability for both parties. We'll look at the key elements every freelancer's contract should include and help you write yours confidently.
The following isn't legal advice. If in doubt, consult a lawyer. Every country has different laws, and every industry has different norms. Rather than providing specific advice, we want to mention basic principles and some points you may want to consider.
Keep it simple
If you're just beginning, you will most likely have to stick to some basic clauses and avoid the more advanced, or at least their stricter versions. If your clients aren't used to working with freelancers, they may find some of these clauses excessive at best and offensive at worst. You don't have to use legal language at all - it could unnecessarily make your contract look intimidating. It's entirely possible to articulate everything in plain language that's easy to understand.
Your contract should include:
Project scope
Define what exactly the output will look like. If it applies, mention all electronic file formats your work will be delivered in. Every field has frequent misunderstandings about what certain products or services should include, so if necessary, address what your output will not include. This is especially important when you see that the client isn't very familiar with the standards in your field. Specify that any extra work will require a contract amendment that will modify the assignment, price, and timeline.
Payment terms
Specify the rate - whether hourly or per project - and the payment frequency or structure. If the payment is split, clearly specify the milestones to which the installments are tied. To motivate your client to pay on time, include a late payment penalty that increases over time, for example by a certain percentage of the owed sum every month. It's also a good practice to specify the payment method and your bank account number or fintech platform email. Consider requiring a portion or full sum to be paid in advance.
💡 Keep in mind
Acceptable payment structure can differ from industry to industry. Find out what’s the standard in yours.
Timeline
Include a start and end date and any milestones or partial deliveries.
Delays
Account for potential delays. On your client's side, they can be caused by him not providing you with the required resources or information or late reviews of the milestones and approvals, without which you can't continue. Specify how the timeline will change in that case, and you can also include some penalties if the delays would significantly disrupt your schedule. Also, it sounds better when you call them rescheduling costs.
Ownership
Specify when the ownership of the intellectual rights is transferred to your client and what happens if he (or you) terminates the project. Address whether or not you will have a right to present the work in your portfolio.
Confidentiality
This clause protects your client and it should oblige you to keep confidential the information not just about the project, but also about everything about your client that you find out during its duration. Since it's there, it can go both ways, especially if you need your client to keep everything to himself, too.
Communication
This may sound like an overkill, but bear with us. It's good to specify how often and how exactly you'll communicate. For example, bi-weekly email updates with a max. 2-hour call during the following week, with more granular updates being recorded in a project management tool. You want to avoid the client bombarding you with requests every day and spending extra hours on calls. To allow your client to get them if he really needs to, specify the hourly rate.
💡 Keep in mind
Using this clause will not sit well with some clients, so have a good explanation ready.
Revisions
Specify what exactly should and shouldn't your finished product or service include, as well as the number of revision rounds. Establish a line between a revision and a new assignment by describing what modifications are eligible in the revision process - what counts as a revision and what doesn't. If the client wants something beyond the scope of the agreed work, include the rates for additional modifications. Either price each service individually or go with an hourly rate. If you choose the first option, specify the number of revisions there, too.
The goal is to formalize the revision process and avoid continuous and unpaid "just one more things". Having it all laid out, this clause will help the client to understand what exactly he's getting from you and how much space there will be for the changes after the work is done. It will even motivate the lazier clients to properly specify the assignment because they will see they can't rely on endless modifications - or at least not for free.
Termination
This clause will help you not to be left empty-handed if the cooperation doesn't work out. Give both parties an option to terminate the contract, and address how the payment, potential delivery of a half-finished product or service, and its ownership rights will be handled in both cases. It often includes a specific "kill fee" which is usually a percentage of the overall project budget based on the completion stage.
The kill fee should consider whether you or your client terminated the project and how valuable the partial delivery is. In some fields, partial deliverables can be relatively easily completed by someone else, while in others they are worthless. If your position allows you, you can specify that if the client terminates the project, you are entitled to a percentage of the remaining project fee apart from being compensated for the work you have already done.
Ghosting
A difficult situation arises when the client stops communicating during a long-term project. A simple clause stating that the project is canceled if the client goes unresponsive for 15 days and the payment for the work you've done until that point is due within 14 days of the cancellation date will at least give you a right to the compensation without having to get hold of the client or wait for the project's original conclusion date.
Force majeure
Don't forget to add a clause that protects you from liability for delays or your inability to finish the project in case of unexpected events out of your control that would prevent you from completing the work, like natural disasters, infrastructure failures, or illness.
Remember
👉 Your contracts can be simple and cover everything needed without using intimidating legal jargon.
👉 Specifying project scope, payment structure, timeline, and revisions will set clear expectations.
👉 Accounting for potential delays is important for keeping the deadline realistic.
👉 Clearly outline intellectual property rights, confidentiality, and the client's rights to the work.
👉 Setting terms for communication frequency, revision limits, and additional fees for work beyond the scope is essential for protecting yourself.
👉 The termination clause protects both parties if the collaboration doesn't work out.
Homework
1️⃣ Draft a sample contract that includes all the elements discussed in the lesson, tailoring it to your specific industry or services.
2️⃣ Research typical payment structures and contract norms in your industry to ensure alignment with others.
3️⃣ Create a revision policy and define what counts as a revision versus a new assignment, including associated costs and limits.
👏 Skills leveled up!
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