Vital contract terms for your protection

Dealing with a contract may not be the most exciting part of being a freelancer. But that pain is nothing compared to what can go wrong without one. And a contract not only protects you if something goes wrong; it helps things from going wrong to begin with, by clarifying expectations and preventing misunderstandings.

Putting together a contract doesn’t have to be nerve-racking or intimidating. While it would be great to be able to hire an attorney to draft or review every contract, that’s not an affordable option for most designers. The good news is that even a basic agreement you write yourself is better than not having one at all. And if it’s clear, unambiguous, and covers the essentials of your business arrangement, you’ll be better protected.

So, to protect yourself and your work, here are eight vital terms that need to be in every contract you take on. Consequently, these terms are by no means an exhaustive list of what to include.

Terms of your estimate

Be as clear and precise as possible about the service or product that you’ll be offering. Otherwise, it’s easy for memories to differ on what you agreed to. Otherwise you might hear something like, “I thought you promised me over the phone you would also do X as part of this deal.” The terms of your estimate should include details about down payment, invoicing schedule, whether fonts or visuals must be approved prior to purchase by the client, rush fee terms, taxes and any other additional costs.

Deadlines

No freelancer signs on a project without a deadline. A lot of times, freelancers can set their own deadlines; other times the work is time sensitive so the client sets their own deadline. Either way, getting it down in writing is a security measure for both you and your client. For the client, this prevents you (the freelancer) from delaying the completion of the project. For you, it allows for changes in the deadline in case the client doesn’t get back with the required approval time. Having deadlines will also allow you to schedule any future freelance projects, even before you start working on them.

Revisions

We’ve all had a project that never seems to end because of constant changes to the design. It could be that the client is confused, or a perfectionist… or indecisive. The worst kind is the one who changes the entire direction of the project halfway through the timeline. All the work you’ve already poured into the project could become useless, and you’ll have to start from scratch – but without a revised deadline.

Instead of spending your time revising, rewriting, or redesigning, a clause in your contract can make this a painless procedure. State clearly the number of revisions that is included inside your estimate. Most freelancers, like myself, offer three free revisions, depending on the nature of the project. And while three seems to be a fair average, some designers charge a fee for each additional revision.

Kill clause

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Sometimes, for reasons beyond our control, a project gets cancelled after you’ve been working on it for some time. For freelancers without a contract, it might mean that they won’t get paid for the work they’ve already completed. A kill clause saves you from being the disadvantaged party in case a project gets axed. It makes sure you’re paid for the work you’ve already done. After all, you’ve spent your time and effort on it; both of which could be spent on other paying projects.

Not everyone charges the same kill fee. Some have an elaborate stage-by-stage kill fee schedule. Some designers may specify that the deposit (usually a percentage of the project estimate) serves as a kill fee, asking for 50% up front. Others may charge as low as 25%. It depends on what seems fair to you, and the level of risk you’re willing to take. The point is to deliver some form of compensation on the work that’s been done before the cancellation of the project.

Amendments

It’s part of the reality of doing business where the terms of a deal will sometimes need to change after it’s been signed. People often amend agreements orally, either picking up the phone or talking in person, until they come to a new agreement. The problem with these types of amendments, is that any disagreement can quickly dissolve into a he-said/she-said argument, because there’s no written proof.

That’s why it’s a good option is to include in your written agreement, a clause saying that amendments can only be made in writing, with the consent of both parties. You generally don’t have to sign an amendment unless the contract specifies that you do (i.e., “This Agreement can only be changed by the signed consent of both parties.”)

Feedback and approval

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Does the client need to physically sign off on each milestone, or will an email confirmation be sufficient? Personally, because I’m busy and easier to reach via email, I add an ‘Acceptance of Terms’ clause, stating that electronic communications will be held as acknowledgments between the two parties. Basically, it means that if the client gives you the go ahead in an email, it’s the same as a signature. So, make sure to clarify the main point of contact and individual responsible for artwork approvals. Ask yourself what kind of authorization will suffice for you and your client.

Ownership Rights

Can this piece of work be included inside your portfolio and/or resold later? When you’re a graphic designer who creates logos, or a writer who contributes paid guest posts to a blog, it’s less clear who owns the work and what rights are associated with it. That’s why, especially in contracts for creative work, it’s important to include a clear statement on ownership rights.

Generally, you can go in one of two directions when it comes to the ownership of your work. The first option is to assign ownership to your client, with you retaining the rights to use it for personal promotion. The second is to grant your client a license to use the work in certain ways. In that case, you retain ownership and control over its use. For most freelancers though, it boils down to owning the rights until the final payment is made.

Guarantees and warranties

This last term is especially vital for web designers and copywriters. If you’re a web designer and a website breaks down, or you’re a copywriter and there’s a spelling error in the final brochure, how long is your work guaranteed? Hence, if there’s an issue with your work down the line, what are your obligations to the client? Once you decide on that, then decide how much will the client need to pay if help is needed beyond the warranty period. Regardless of how you format it, your contract should clearly and specifically state what you’re going to do for your client and for how long. Otherwise you could be under their thumb for a long time.

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Hopefully these vital terms will help to  better protect your on your next freelance project. Just remember, when you’re putting together an agreement that you think about what could cause confusion or misunderstanding. And include language that clearly outlines what will happen when things don’t go as planned. Not everyone gets paid in the end; check out what freelancers are owed.