A contract is the most important part any project. The contract not only protects a freelancer and a client legally, but it also clearly defines deadlines and payments.
It is absolutely amazing to me how many freelancers start off their first jobs without a contract. In some cases, it's because the freelancer's first clients are friends or even family. In other cases, a freelancer may feel they're not ready for a contract or that they can trust the client.
Whatever the reasons may be, they're all the wrong reasons.
The least a contract should include A common preconceived idea with contracts is that they should be at least 50 pages long and that they should use confusing words and sentences. This is just not the case. People who write confusing contracts are either a) incapable of writing, b) trying to look smarter than they are, or c) attempting to deceive the reader. Truth be told, the easier a contract is to understand, the more at ease a client will feel about signing it and doing business with the freelancer.
My contracts are a page long, two at the most. Depending on the size of a company and all the legalities involved, the contract may need to be bigger.
At the least, a contract should include the following:
Involved parties The contract should clearly state the companies involved, where they reside, and who will be representing them.
The project The contract should specify the job to be done and when it will be done. Payment method, amount, and when the payments will be made should be included as well.
Legal bindings Specify what will happen if either of the parties involved flakes out of the agreement. This is typically summed up by saying legal action will be pursued in the state of the freelancer.
Signatures A signature along with a date is a legal binding agreement, but only if the freelancer actually get it.
I know it may sound simple, but that's all there is to it.
Other clauses a contract can include I typically include more than the bare minimum when composing a contract, but to avoid making the contract too large and overwhelming, I try not to get out of control.
Confidentiality Although the word is a bit "covert" sounding, it fits this part of the contract. I always include something that says I'll keep the clients business practices to myself and the client will do the same.
Non-Competition This goes along with the confidentiality agreement. This clause says that the freelancer and the client will not steal work away from each other. Putting this clause in the contract will allow both the freelancer and the client to work together on the project and be as open as possible with each other.
Source File and Copyrights This is typically one of the items missed in contracts. Who keeps the source files when the project is over? If the client keeps the source files, can he do whatever he wants to with them? This needs to be specified to prevent an endless amount of headaches that could ensue after the project.
Agreement Timeout Let's say that a client puts half down on a project. In order for the freelancer to get to work, the client needs to get him the actual content for the site. The client never comes through with the content for whatever reason. Finally, seven months later, the client turns in his content and expects the freelancer to get right to work. Sound exaggerated? That is a story out my own experience.
To prevent this situation, an agreement timeout is needed. If the client is late at a specified amount of time, then a late fee shall apply. If the client is even later and doesn't pay the late fee, the contract becomes null and void.
Sample Contract Instead of just telling you what should be in a contract, I have provided a contract template that I use. This contract has been put together with the help of a lawyer, past experiences, fellow freelancers, and the insight of some members from Flash Kit's Boardroom. I have a word version free for download. Feel free to edit it to fit your needs.
Now you have no excuse to not have a contract when doing freelance work.
