As a newcomer in the freelance realm, one aspect that is often forgotten or neglected when venturing into freelance is drafting a contract. You may think that agreeing on the details of the project verbally and sealing the deal with a handshake is easy and convenient for you and the client, but that is not the case. It is not uncommon for freelance beginners to not draft a contract and then deal with issues such as no or late payment. This is even more common in case of international transactions.

Freelancers often express the regret of not having a contract during their early years of freelancing and how they ended up losing their compensation. They were also unable to take legal action due to lack of evidence. So, if you are planning on becoming a freelancer, remember to never neglect this aspect.

There are always some signs that showcase how a client may not be great to work with, but the biggest sign to watch out for is them not offering to draft a contract, refusing, or delaying signing a contract drafted by you.

A point to note here is that a contract should never be one-sided. This means both you and the client should benefit from it, and it should not cause any form of miscommunication or dispute which may strain your relationship.

What is a freelance contract?

A freelance contract is a legal document that discusses the important aspects and ensures ethical working conditions of a project for you and the client. It serves as a guide for you to refer to during the project as it explains the requirements and details of the project.

The importance of a freelance contract

A freelance contract is essential to show that you are a professional and take your projects seriously. It gives a sense of security to both you and your client. A freelance contract is meant to give clarity. It gives direction to the project by defining the roles and responsibilities shared during its duration. It discusses the terms and conditions of the project.

A well-drafted contract ensures the smooth functioning of a project. In this article, we will discuss the key elements to consider when drafting a freelance contract:

Details of the project

Any contract must have the basic details such as your name, client name, contact information, the preferences of the client, etc. The contract must include the objectives to be fulfilled so you can go back to it and ensure no point is missed. Discuss and include the responsibilities and roles that you and your clients would share, if you’re in need of some resources then the client is willing to provide them. Mention the mode of communication, E-mail, WhatsApp, or any mode of communication which is convenient, and ensure to archive it in case it is needed later. Mention the duration or time and schedule work accordingly, especially when international clients are involved.

Terms of payments

The major issue in any freelance project without a contract is often related to payments. Even if you have the details and communicate with the client regularly, there are chances of miscommunication with an overseas client. In the case of cross-border payments, it is essential to be upfront and clearly mention these payments aspects in your contract so there is accountability. So, remember to state the terms of payments very clearly. This includes how to get paid, that is, the mode of payment you are willing to accept. Also, mention how you price your services. Check out our blog on Freelance Pricing Models to learn more about pricing. This ensures transparency and makes the client trust you. For hassle-free cross-border payments, connect with BRISKPE now!

Ownership

There are always issues with ownership when it comes to freelance projects. It is better to discuss how and who would own the project during and after the project. Most of the time you own the project while it is still in progress. After the project is completed and you get paid, the ownership of the project typically goes to the client. This is the standard practice, but it is better to get this mentioned in your contract to avoid miscommunication.

Late Fee

Often, the projects including local or cross-border payments, are delivered within the deadline, yet they are not paid on time by the client. When no contract or clause that doesn’t mention the terms of what can be done in case a payment is delayed, it becomes difficult for you as a freelancer because you can follow up with the client to take legal action. The former option is likely to be neglected or delayed and there could be a lack of evidence in the latter. To protect yourself from this, it is better to add a clause mentioning a late fee. Remember that the interest or lateness fee shouldn’t be too high, send reminders and mention the late fee as it adds up.

Revisions and Alterations

Clients want the best value for what they have paid, so they would often make changes to achieve the best results. This can be overwhelming as some clients may ask for multiple rounds of alterations. It is better to mention beforehand how many revisions and alterations you will make. It is fine to give at least one to three rounds of revisions and alterations. You can also add a clause where you can charge extra if you make more revisions after the ones you’ve mentioned.

Termination clause

Mention how long the project will go on and when it can be expected to end. Include other factors that may inevitably stop the project such as sickness or unprofessional behavior. Add the terms and conditions under which either or both parties can terminate this contract. Additionally, mention the details on the confidentiality of the project, in any. If there are extra charges involved when specific changes are made during the revision process or if the taxes will be included in your prices, those too must be mentioned.

Conclusion

The elements discussed above only work as a guiding principle for you when drafting a freelance contract. You can add more points or only refer to the ones relevant to your niche. Nowadays, there are many downloadable templates available online that can be customized to generate the perfect contract. Additionally, ensure that you are consulting with your lawyer to understand the legal terms and conditions before drafting a final contract. Use legal action as the last resort to save time and money for both parties after enough follow-up and to avoid the possibility of straining the relationship with the client.