Clauses To Keep In A Freelancing Contract To Protect Yourself

Creating a comprehensive freelancing contract can feel daunting, especially when you’re just starting. But, it’s crucial to protect yourself, your time, and your business. Here, I’ll walk you through some essential clauses every freelancer should consider including in their contracts. I’ll also share some personal anecdotes to illustrate the importance of each clause.

1. Scope of Work (SOW) Clause

First things first, clarity on the project’s scope helps prevent what we freelancers dread the most: scope creep. The SOW clause details what the project entails—what you will be delivering, when, and in what format.

Once, I accepted a writing project without a clear SOW. What was initially set as a 10-article project turned into a demand for additional content revisions and SEO optimization, which wasn’t originally discussed. Now, I always specify what the project will cover and any additional charges for extra services.

2. Payment Terms

Unclear payment terms can lead to delayed payments, which is a headache no freelancer wants. This clause should detail how much, when, and how you will get paid.

Early in my career, I didn’t specify a late fee or a payment schedule. I had a client who delayed payment for over six months. Now, I include payment milestones, a clear due date, and a penalty for late payments. It’s made a significant difference.

3. Revision Policy

Revisions are a natural part of freelance work, especially in creative projects. However, you need to limit the number of revisions to prevent endless tweaking.

I learned this the hard way when I didn’t cap the revisions in a graphic design contract, leading to an exhausting eight rounds of revisions. Now, my contracts specify that only two to three revisions are included and additional changes are billed separately.

4. Cancellation Policy

Sometimes projects get shelved or directions change. A cancellation policy protects you if a project is terminated prematurely by ensuring that you are compensated for the work done up until that point.

After a project I was working on was suddenly canceled, and I was left uncompensated for the work I had done, I introduced a cancellation clause. This stipulates that I receive a percentage of the total fee based on the amount of work completed.

5. Intellectual Property (IP) Rights

The intellectual property clause is crucial, especially in creative and tech fields. You need to specify who owns what and at what stage. Usually, rights are transferred to the client upon full payment.

I once retained the rights to a web design mockup until final payments were made after a client tried to use my designs without settling the bill. Since then, my contracts explicitly state when and how IP rights are transferred.

6. Confidentiality Agreement

As a freelancer, you might access sensitive information. A confidentiality clause protects both you and your client by specifying that private information stays private.

After accidentally discussing a project detail in a public setting, I now ensure every contract has a confidentiality clause, emphasizing the importance of discretion for both parties.

7. Indemnity Clause

This protects you from legal liability should you unintentionally infringe on third-party rights or if your work causes damages, provided it wasn’t due to your negligence.

I include this after a friend faced a lawsuit due to unintentional copyright infringement in a marketing brochure. This clause can really mitigate unforeseen legal issues.

8. Kill Fee

Sometimes, despite everyone’s best efforts, projects might not proceed. A kill fee ensures you’re compensated for your effort if the project is halted from the client’s side.

Once, after working weeks on a project, the client went quiet. Thanks to my kill fee clause, I was able to invoice for the initial stages.

9. Dispute Resolution

In case of disagreements, it’s good to have an agreed method of resolution. This might include mediation or arbitration as alternatives to legal proceedings, which can be expensive and time-consuming.

A disagreement over a project’s scope once escalated, but since my contract included mediation as a first step to resolve disputes, we settled the matter quickly and amicably.

10. Complete Agreement

This clause states that the written contract contains the entirety of the agreement and supersedes any prior agreements, discussions, or representations.

I’ve realized that this saves a lot of potential “But I thought we agreed on…” type of discussions since everything is clearly laid out in the contract.

Conclusion:

These clauses have saved me from numerous potential setbacks in my freelancing career. They provide a safety net that allows me to work with more confidence and professionalism. Always remember, the clearer the contract, the smoother the project tends to go. And if you’re ever in doubt about what a contract should include, consulting with a legal professional can provide an extra layer of security.

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