As you freelance, you’ll come across different clients, some of whom may be difficult to work with. There might be disagreements about payment, revisions, ownership and quality of work. That’s why having a clear freelance contract before starting a project is essential to protect you and your client.

In this post, we’ll break down why freelance contracts are important and some key things to include when making one.

What is a freelance contract?

A freelance contract is a legally binding document that clearly outlines the terms and conditions of the working relationship. A well-drafted contract helps prevent misunderstandings and protect the interests of both the client and freelancer throughout the project.

Now that you know what a freelance contract is, let’s explore why you need one.

Importance of freelance contracts

1. Clear expectations: Freelance contracts should outline what both parties expect regarding deliverables, timelines, and final products. This prevent confusion and ensures everyone is on the same page.
2. Legal protection: As mentioned earlier, freelance contracts are legally binding, which means in cases of disputes or contract breaches, there is legal support. This makes it easier to resolve issues and protects your rights.
3. Professionalism: Having a contract shows you’re serious and [professional](https://www.ownr.co/blog/how-to-create-a-freelance-contract/#:~:text=What is a freelance contract,both you and the client.) about your work. It helps build a good reputation among clients and makes them more likely to trust you.
4. Project management: Freelance contracts usually include milestones, deadlines and deliverables, making it easier for you and your client to track progress and ensure the project stays on schedule.

Whether you use a lawyer or an online template from sites like Wise, PandaDoc, or Contractbook, make sure your contract includes the following:

Seven major elements of a freelance contract

Contact details:

The freelance contract should include the full names of both parties along with their phone numbers, email addresses and mailing addresses. Additional information, like the client’s company name, can also be included. This ensures that both parties can access each other’s contact details easily.

Project scope:

This is one of the most critical sections in a freelance contract because it prevents disagreements and misunderstandings. The project scope should be as detailed as possible, clearly outlining the tasks, deliverables, deadlines and milestones. A well-defined project scope protects the freelancer from [scope creep,](https://www.forbes.com/advisor/business/scope-creep/#:~:text=Scope creep is when a,produce a satisfactory final deliverable.) which is when extra workload and tasks are added beyond the original agreement.

Also read: Red flags to look out for as a freelancer

Payment terms:

Payment is a common reason for disputes between clients and freelancers, but you don’t have to go through this hassle. Before taking on any project, your freelance contract should answer the following questions:

• What is the total fee for the project?
• What pricing method will be employed? Hourly, per word, fixed, per deliverable or milestone.
• How will payments be made (e.g. bank transfer, credit card or digital payment platforms)?
• Are there penalties for late payments?
• Will there be upfront payments, and what percentage?
• What is the payment timeline after invoice submission?
• Will funds spent on tools, software or equipment be reimbursed?

Timelines:

Outlining the deadlines and timelines for the project’s completion in the freelance contract helps to keep it on track. The contract should clearly state:

• The project’s start date
• Milestone deadlines
• Final deadline
• Revision deadline
• Terms for extension
• Penalty for delays

Ownership rights:

The contract must clarify who owns the finished product. Typically, the freelancer owns rights to the project until the client makes payment. However, the section should also address who gets credit for the work and how it can be used. To better understand ownership and copyright, it’s advised that you speak to a lawyer when drafting this section of your contract.

Also read: Essential guide to protecting intellectual property for freelancers

Changes and revisions:

To avoid endless revisions, which can cause scope creep and project delays, specify the number of revisions and edits included in the project’s fee. You can also charge extra for revisions exceeding the agreed-upon limit in the contract.

Termination clause:

This section defines contract termination conditions, including early termination penalties. It should also specify whether payment will be made if the client terminates an ongoing project.

Wrapping up

A well-detailed freelance contract helps ensure a smooth and professional relationship between freelancers and clients. When drafting your contract, aim to be as clear and concise as possible to make the project a positive experience for everyone involved.