Contracts: Good Fences Make Good Neighbors

June 28, 2010 in Freelance Tips and Tricks - Viewed 122 times.

I think every individual who has worked as a freelancer for some time understands the importance of a thorough contract. For those new to freelancing (that haven’t begun using contracts), I pray this post caught your eye and can save you some major headache moving forward.

As contract workers, it amazes me when my peers and coworkers don’t send out contracts. As I watch my friends, I’ve found it usually takes one awful experience involving a 90 hour work week and monstrous scope creep to give them the motivation they need to implement contractual agreements. Following this terrible week, I like to cap it off for them by saying… “Told you so”.

Going forward, please know that I am not a lawyer – these suggestions are being made based on experiences I’ve been through. Hopefully we’ll be able to get a lawyer to offer some advice as well.

Detailed Project Scope

The project scope is where you should list what you’re going to be providing your client. It’s important to be very detailed, and very specific. Be selective in your word choice and leave no room for interpretation. Sometimes, it can helpful to list services/deliverables you will not be providing. For example… if you’re doing a website redesign, you’ll want to state you’re going to redesign each page – but will not be modifying content. Following this, provide a bit of information explaining what the consequences are if the client does demand content modifications. Express the fact that in the event of scope creep, time and materials must be compensated for.

Define Your Workflow

This section is a must-have for those being compensated post milestone completion, though it’s not as necessary for smaller projects. Defining your workflow should answer the question, “How are you going to do this?”. Layout the steps you must go through in order to provide the specific deliverable being offered. In the event of a web design, such steps may include the initial consultation, wireframing, design mockups, slicing/coding, and deployment.

Establish Your Point of Contact

This one gets overlooked quite frequently – mostly because people can often get away with it. Establishing a single point of contact is crucial. Though you may slip under the radar for some time, eventually you’re going to come across one of those companies that has four people juggling the same project… none of which communicate with each other. To avoid he-said-she-said confrontation and issues, specify with whom you’re going to be discussing project details. This will force your client to communicate and collaborate on project ideas prior to requesting them.

Source Files and Copyrights

With larger projects, don’t forget to declare the rightful owner of the work developed. Also, be sure to note whether royalties should be paid to the developer for use of the deliverable/service.

Payment Terms

This seems to be the point that everyone remembers. Define your payment terms as clearly as possible. Specify invoice due dates, amounts, payment information, and penalties. Think through the “What if’s” and prepare for the worst. What happens if the client’s payment is late? What happens if the client chooses not to pay? What if they don’t like the service you’ve provided them? The more thought you put into this the better.