{"id":5360,"date":"2020-04-02T08:00:48","date_gmt":"2020-04-02T06:00:48","guid":{"rendered":"https:\/\/www.jimdo.com/blog\/?p=5360"},"modified":"2020-12-21T21:42:28","modified_gmt":"2020-12-21T19:42:28","slug":"freelance-contract-terms","status":"publish","type":"post","link":"https:\/\/www.jimdo.com/blog\/freelance-contract-terms\/","title":{"rendered":"Your Freelance Contract: 10 Things You Need to Know"},"content":{"rendered":"\n<p>Having a contract in place before you start freelance work is a wise move. It may help protect you from non-paying clients and many of the other risks associated with being freelance. After all, according to the UK Federation for Small Businesses, 58% of surveyed freelancers have experienced not being paid for their work. <\/p>\n\n\n\n<p>Yet payment is just one aspect. A freelance agreement will also help you to:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Set clear expectations before you start work.<\/li><li>Overcome client objections about payment, deadlines, revisions, etc.<\/li><li>Charge for any extra work that wasn\u2019t in the original project scope (often called \u201cscope creep\u201d).<\/li><\/ul>\n\n\n\n<p>In this article, we\u2019ll introduce you to freelance contracts by covering:<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-flat ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.jimdo.com/blog\/freelance-contract-terms\/#Does_every_freelancer_need_a_contract\" >Does every freelancer need a contract?<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.jimdo.com/blog\/freelance-contract-terms\/#What_to_include_in_your_freelance_contract\" >What to include in your freelance contract<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.jimdo.com/blog\/freelance-contract-terms\/#Freelance_contract_essentials\" >Freelance contract essentials<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.jimdo.com/blog\/freelance-contract-terms\/#Freelance_contract_tips\" >Freelance contract tips<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.jimdo.com/blog\/freelance-contract-terms\/#Free_freelance_contract_templates\" >Free freelance contract templates<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.jimdo.com/blog\/freelance-contract-terms\/#Tips_on_how_to_handle_a_breach_of_contract\" >Tips on how to handle a breach of contract<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Does_every_freelancer_need_a_contract\"><\/span>Does every freelancer need a contract?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You don\u2019t necessarily have to have a contract before you take on freelance work. But without one, there\u2019s a risk that you or your client could end up out of pocket if a project doesn\u2019t go to plan.<\/p>\n\n\n\n<div class=\"jimdo-alert\"><strong>Note:<\/strong> This post gives general tips but does not constitute legal advice. Be sure to check your local rules and contact a legal expert when necessary.<\/div>\n\n\n\n<h3 class=\"wp-block-heading\">You might not need a freelance contract if:<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>You\u2019re freelancing as a hobby.<\/li><li>You don\u2019t rely on your freelance income to pay the bills.<\/li><li>You mostly take on small, short-term projects that don\u2019t cost a lot of money.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">It\u2019s recommended to have a freelance contract if:<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Freelancing is your full-time job.<\/li><li>You rely on your freelance work to pay the bills.<\/li><li>You work on high-value projects that can take weeks or months to complete.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_to_include_in_your_freelance_contract\"><\/span>What to include in your freelance contract<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>What you put in your contract depends on the kind of work you do. For example, do you need a contractual agreement for each one-off project you work on, a retainer contract for recurring clients, or <a href=\"https:\/\/www.jimdo.com\/addon\/legal-text-generator\/\" target=\"_blank\" rel=\"noreferrer noopener\">Terms and Conditions<\/a> that you ask clients to agree to before you start work? <\/p>\n\n\n\n<p>Here are the top clauses to consider including in your freelance agreement. (For more specifics, be sure to consult with a legal expert).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Freelance_contract_essentials\"><\/span>Freelance contract essentials<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">1. Your fees and payment terms<\/h3>\n\n\n\n<p>This section defines how much you expect to be paid, and when. Do you require a deposit on booking, full payment upfront or will there be multiple payment milestones? For example, it\u2019s common for freelance writers to take a 50% deposit when they book a project and the remaining balance on completion. This helps with cash flow and gives you a buffer if a client backs out of a scheduled project for any reason.<\/p>\n\n\n<div class=\"jimdo-alert\"><strong>\u201cWhy should I pay upfront?\u201d<\/strong><br \/>\nThis is a common objection to get from clients or accounts departments, who aren\u2019t willing to pay for work you haven\u2019t delivered yet. Think about this when you respond: When you\u2019re a freelancer, your time is the product your clients are paying for\u2014and there\u2019s a finite supply of it. Taking a deposit or full payment upfront lets clients reserve a slot in your schedule. If a client doesn\u2019t book their space in advance, there\u2019s no way for you to guarantee that you\u2019ll be able to work on their project when they need you. Because you\u2019ll have allocated that availability to someone else.<\/div>\n\n\n\n<h3 class=\"wp-block-heading\">2. Late payment penalties<\/h3>\n\n\n\n<p>What happens if a client doesn\u2019t pay on time? Charging interest on late payments can help protect your cash flow and encourage clients to pay promptly. <\/p>\n\n\n\n<p>Before you can start charging late payment fees, your clients need to know about them in advance. So state them clearly in your contract and make sure they are reasonable\u2014for example, a 5% charge added for every 14 days the invoice goes unpaid. You could also consider offering a discount to clients who pay early.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Additional work (scope creep!)<\/h3>\n\n\n\n<p>If you\u2019ve agreed on a flat fee for a project as opposed to an hourly rate, what happens if the work involved changes? \u201cScope creep\u201d is when the requirements of a project exceed the original plan. For freelancers, this usually means your client <a href=\"https:\/\/www.jimdo.com/blog\/when-to-turn-down-work\/\">expecting more work for the same fee<\/a>. Clearly defining the project deliverables in your initial agreement gives you something concrete to refer to if your client tries to push for more work. Remember to include how you will handle additional work\u2014<a href=\"https:\/\/www.jimdo.com/blog\/how-to-make-sure-you-charge-enough-for-freelance-work\/\">will you charge it at an hourly rate or quote a new project fee<\/a>?<\/p>\n\n\n<div class=\"jimdo-alert\">Looking for more tips on what to charge? Check out <a href=\"https:\/\/www.jimdo.com/blog\/how-to-make-sure-you-charge-enough-for-freelance-work\/\" target=\"_blank\" rel=\"noopener noreferrer\">Are You Charging Enough for Your Freelance Work<\/a> and <a href=\"https:\/\/www.jimdo.com/blog\/how-to-ask-for-more-money-as-a-freelancer\/\" target=\"_blank\" rel=\"noopener noreferrer\">How to Raise Your Freelance Rates<\/a>. <\/div>\n\n\n\n<h3 class=\"wp-block-heading\">4. Copyright and ownership<\/h3>\n\n\n\n<p>Who owns the rights to your work? As an employee, your employer will usually own the rights to all the work you do for them\u2014whether that\u2019s photographs you take or ideas you share in meetings. <\/p>\n\n\n\n<p>When you\u2019re freelance, you typically own your work until you transfer that ownership to your client. It\u2019s up to you to specify if and when this transfer will happen in your contract, eg. when you submit your final draft, once the client has paid in full or at another point. Remember to specify exactly what your client will own too, for example, will they own the rights to your final draft or all the ideas you\u2019ve proposed during the project? Check the copyright laws in your country and get legal advice if you\u2019re not sure.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5. Using work in your portfolio<\/h3>\n\n\n\n<p>Showcasing your previous work on a <a href=\"https:\/\/www.jimdo.com\/website\/freelance\/\">freelancing website<\/a> is the best way to win new clients. But if you want to use client work to market your business then you\u2019ll need permission first. I have a clause in my contract that confirms I reserve the right to use extracts from projects I\u2019ve worked on for clients for marketing and self-promotion purposes. I still check with my clients on a case by case basis, though, just as a courtesy. This shouldn\u2019t come as a surprise to clients, because most will have hired you after seeing your portfolio.<\/p>\n\n\n\n<div class=\"wp-block-columns are-vertically-aligned-center post-cta has-white-background-color has-background is-layout-flex wp-container-core-columns-is-layout-0111f410 wp-block-columns-is-layout-flex\" style=\"padding-right:var(--wp--preset--spacing--50);padding-left:var(--wp--preset--spacing--50)\">\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<h4 class=\"wp-block-heading\">Bring your business online with Jimdo.<\/h4>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\">\n<div class=\"wp-block-group is-content-justification-right is-nowrap is-layout-flex wp-container-core-group-is-layout-17124a9a wp-block-group-is-layout-flex\">\n<div class=\"wp-block-button\"><a data-tracking=\"post_cta_create_website_signup\" class=\"wp-block-button__link\" href=\"https:\/\/register.jimdo.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Start Now<\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<h3 class=\"wp-block-heading\">6. Cancellation policy and &#8220;kill fee&#8221;<\/h3>\n\n\n\n<p>What happens if a client cancels unexpectedly, either before or during a project? Your contract should clearly state if you allow cancellations and if so, within what timeframe, and whether or not clients will lose their deposit if they cancel. If you have a retainer agreement, make sure you include how much notice is required if either party wants to cancel, eg. up to six months\u2019 notice for long-term retainers or thirty days for a rolling contract.<\/p>\n\n\n\n<p>Less eerie than it sounds, a \u201ckill fee\u201d is chargeable when a client cancels a project you\u2019re already working on despite your best efforts. It\u2019s usually a percentage of the full project value and covers some (or all) of the time you\u2019ve invested in the project to date. If a client cancels a project at short notice and you can\u2019t replace that income gap right away, you\u2019ll still get some of the money you expected to earn in that time.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">7. Illness or injury policy<\/h3>\n\n\n\n<p>What happens if you have to take time off unexpectedly? No matter how healthy you are, the chances are, you\u2019ll have to take unplanned leave at some point in your career\u2014for example, if you are sick, have a bereavement or need to care for a loved one. The last thing you want to think about at times like these is work, so it\u2019s important to have a process in place and explain it in your contract. For example, you might reserve the right to <a href=\"https:\/\/www.jimdo.com/blog\/why-virtual-assistant\/\">outsource work to another contractor<\/a>, postpone the job for a set period of time or offer a full or partial refund.<\/p>\n\n\n\n<p>Outwith your contract, you can prepare for a rainy day by getting into good habits now. Like a little paying into your own \u201csick day fund\u201d every month or taking out income protection insurance, which will pay you a certain amount each month if you\u2019re unable to work. Be aware that some policies won\u2019t cover your full income.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">8. Changes and revisions<\/h3>\n\n\n\n<p>We\u2019ve all submitted work only to have our client come back with endless requests for edits or amends. Without a clause in your contract, it\u2019s easy to get caught in the \u201cTrap of Infinite Tweaks.\u201d <\/p>\n\n\n\n<p>Specify how many rounds of changes you will carry out within a set project fee and how much changes beyond this threshold will cost. For example, it\u2019s common for freelance writers to include one round of edits in the project price, then charge an hourly rate for additional changes. <\/p>\n\n\n\n<p>Remember to include a time limit within which revisions must be submitted. This will help keep momentum going and stop clients coming back weeks later when you\u2019re busy with other work.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">9. Your status as a contractor<\/h3>\n\n\n\n<p>As a freelancer, you are not an employee\u2014you aren\u2019t entitled to the same benefits, like sick pay and holidays\u2014but some clients might still be tempted to treat you like one. <\/p>\n\n\n\n<p>Your contract should define what it means to be a contractor, eg. you\u2019re free to work on your own schedule, set deadlines, take on work from other clients, and choose which projects you take on. Check the regulations in your country if you\u2019re not sure.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">10. Your main point of contact<\/h3>\n\n\n\n<p>Last but not least, this isn\u2019t necessarily a contractual clause but will certainly make your life easier: Who will be your main point of contact for this project? Having one person on the client side who is ultimately accountable for responding to your queries, processing your invoices and reviewing your work will help you get things done and stay on schedule. This is especially important if you work with larger organizations or will be dealing with multiple stakeholders.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Freelance_contract_tips\"><\/span>Freelance contract tips<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Write in plain English.<\/strong> Nobody likes reading long, confusing contracts. It\u2019s much easier to get buy-in from your clients when your contract is written in plain language and is easy to understand, but be sure to have all of your legal bases covered.<\/li><li><strong>Get professional help.<\/strong> There are lots of freelance contract templates online and articles like this one will certainly help you get started. But there\u2019s no substitute for professional advice. Once you\u2019ve drafted your project, have a legal professional look over it. It will likely be a worthwhile investment.<\/li><li><strong>Update your contract regularly.<\/strong> Running your own business is an adventure, and you\u2019ll come across new pitfalls along the way. When you run into a problem, consider how you could better protect yourself from it by adding a new clause to your next contract.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Free_freelance_contract_templates\"><\/span>Free freelance contract templates<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The type of contract you use will depend on your industry, the kind of clients you work with and what\u2019s important to you. Here are some contract examples from different sources:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li><a href=\"https:\/\/stuffandnonsense.co.uk\/projects\/contract-killer\/\">Andy Clarke\u2019s Open Source Contract<\/a> free for anyone to use and adapt.<\/li><li><a href=\"https:\/\/procopywriters.wpengine.com\/copywriting_agreement.pdf\">John McGarvey\u2019s Copywriting Contract<\/a> based on Clarke\u2019s formula and adjusted for writers.<\/li><li><a href=\"https:\/\/www.docracy.com\/3152\/designer-sample-contract\">Speider Schneider\u2019s Sample Design Contract<\/a> adapted from the <a href=\"https:\/\/www.aiga.org\/globalassets\/aiga\/content\/tools-and-resources\/46874510-standard-form-of-agreement-for-design-services.pdf\">AIGA Standard Form of Agreement for Design Services<\/a>.<\/li><\/ol>\n\n\n\n<p>These sample contracts are just a starting point. Be sure to find one that works for your business, fits your sector, and covers all of the legal rules that apply to professionals in your industry.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Tips_on_how_to_handle_a_breach_of_contract\"><\/span>Tips on how to handle a breach of contract<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Keep all communication in writing.<\/strong> It\u2019s much easier to refer to conversations when they\u2019re there in black and white. So if a client relationship goes sour, avoid talking on the phone and stick to email instead. This will also help you stay professional and keep your emotions at bay.<\/li><li><strong>Stick to your guns.<\/strong> You have a contract and you may be within your rights to enforce it. Remember that you have a business to run and don\u2019t give in to undue pressure from clients.<\/li><li><strong>Seek legal advice.<\/strong> While your contract should offer some protection, if you\u2019re unsure what to do next, there\u2019s no substitute for proper legal advice. It could save you time and hassle in the long run.<\/li><\/ul>\n\n\n\n<p>Remember, your contract is a work in progress. You can edit and improve it as your business grows!<\/p>\n\n\n\n<div class=\"wp-block-columns are-vertically-aligned-center post-cta has-white-background-color has-background is-layout-flex wp-container-core-columns-is-layout-0111f410 wp-block-columns-is-layout-flex\" style=\"padding-right:var(--wp--preset--spacing--50);padding-left:var(--wp--preset--spacing--50)\">\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<h4 class=\"wp-block-heading\">Bring your business online with Jimdo.<\/h4>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\">\n<div class=\"wp-block-group is-content-justification-right is-nowrap is-layout-flex wp-container-core-group-is-layout-17124a9a wp-block-group-is-layout-flex\">\n<div class=\"wp-block-button\"><a data-tracking=\"post_cta_create_website_signup\" class=\"wp-block-button__link\" href=\"https:\/\/register.jimdo.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Start Now<\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Does every freelancer need a contract? What should it include? Protect yourself and your clients today with these 10 recommended contract essentials.<\/p>\n","protected":false},"author":2,"featured_media":5362,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[116],"tags":[4707,121],"class_list":["post-5360","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-tips","tag-freelancing","tag-small-business"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Tips on What to Include in Your Freelance Contract Agreement | Jimdo<\/title>\n<meta name=\"description\" content=\"Struggling with scope creep, pushy clients or late payments? 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