Freelancing is hard work. But it’s much harder if you don’t get paid for the work you perform and that’s why you need a Freelance Work Contract. Most disputes between freelancers and customers are the result of contracts that are ambiguous about important details. Many freelancers make the mistake of avoiding written contracts altogether, and rely only on verbal agreements. Freelancers are often afraid that if they spell out all the terms of an agreement in writing, they’ll lose the deal they made by doing so.
If you’re afraid of writing down the facts of a deal and presenting it to the customer, you are relying solely on ambiguity to save you. It’s useful to remember that the other party might be doing the same, and they’ll conveniently remember the facts in their favor when any disputes arise. Therefore, the time to avoid misunderstandings is before you begin. Here is a short list of the details you should include in any freelancing work contract.
Pricing
Don’t ever verbally quote a low price with the hopes that you can charge more for extras as the job goes on. The other party will only hear the price, and they’ll likely be thinking of all the things they’d like to add to it without paying extra. Customers usually consider a price you tell them as a flat-rate, and they’ll often perceive any attempt to collect more as bait and switch. You’ll do the opposite, and assume that anything that wasn’t mentioned yet, isn’t part of the deal. Consequently, you’ll both be wrong about what the other party is ready and willing to do.
You’re always better off if you write down exactly what you are going to do, and exactly how much you’re going to charge for it. Present it to the other party as the way you understand the deal you’ve agreed to during negotiations. Never give a range of prices for anything unless you’re prepared to settle for the lowest number, because that’s what everyone will typically assume applies to them. Also stipulate the hourly rate for extras, and clearly define what an extra is.
Payment Schedule
You should stipulate both how much you’ll be paid, and when that payment is due. If you’re working on a large job, you should break it into manageable pieces and bill as the job is completed. Never ask for too much up front, but always get something as a show of good faith. If the customer has a billing procedure, you should know about it in advance and add it to your deal in writing. In today’s world, it’s very important to mention acceptable methods of payment. If you can’t accept particular forms of payment, say so before it becomes a problem.
Kill Fees
Clients sometimes stop projects after you’ve started working on them. Your contracts should have some mention of what happens if the job is cancelled after it begins. Don’t make it punitive. Jobs get cancelled all the time, and you simply need to make sure you’re properly compensated for any work that you’ve already performed.
Single Point of Contact
If you can manage it, write a single point of contact into your contract. If you’re working for a large business, you might start getting conflicting input from multiple people. Specifying that you’d prefer to deal with only one person for a contract can avoid endless revisions that you don’t get compensated for. You’d be surprised how many clients jump at the chance to sign a contract that specifies them as the single point of contact. They hate losing control of the process as much as you do, and the contract will give them the authority to exclude others from dealing with you directly.
Limit Revisions Somehow
Most freelancers are proud of their work and eager to accommodate their clients to achieve the best outcome. However, beware of offering unlimited revisions. You’ll never get paid for revisions as if they were contract changes. Set a limited number of revisions in your Freelance Work Contract. This prompts the customer to notify you of everything they want changed in one or two requests, and primes them to pay you for additional changes after that.
