Why Freelancers Should Have A Contract for Each Project

Whether it be web design or writing, or anything dealing with a service, freelancers should have a contract for each project, no matter how big or small the task may be.

For newbies in the freelancing business, this can eliminate a lot frustration in case a the project does go as it is suppose to. While freelancers are not all innocent, there are many times a client decides that the freelancer should provide services not stated from the beginning of the project.

Some of the areas that should be included in a freelance contract are:

  • Explain what the project is about.
  • Give an estimated time of project’s completion.
  • Explain to client what services are included and what services are not included in the project.
  • Explain how you will complete the project.
  • Give a project bid and payment policy.
  • Share methods of how client can contact you.

Communicate and also make sure to document conversations via instant message, Facebook messages, Skype, Google Talk and more as these can be used in case a client refuses to pay for services that have been completed.

For example, I had a client who seemed to be happy with her site’s development and had expressed several times that the project’s results were more than she had expected. We had discussed prior to the project what was not included in the project and she wanted me to do this without being paid. Because I had fully completed her project, and had already installed it on her live site, I used her conversations to dispute her credit card reversal. This transaction was done through PayPal and they had sided with me based on the documentation I was able to provide.

Prior to this project I have had repeat clients and they have come to expect more than the project entailed, so I decided that it was necessary to put together a formal project proposal and contract. This would define exactly what the project entailed and what services were included.

So, in conclusion, anyone in the line of freelancing should probably consider putting together contracts in their own business dealings, rather than relying on emails, instant messengers, and chats to cover the legal end of working on a project.

As a note, it is quite alright to do extras, but those must be specified as extra and not to be held as part of the original project. However, it probably is better if you just stick to not doing extras or it will be expected every time you work with the client. Remember, your time really is money.

Are you a freelancer? Do you put together formal bis proposals and contracts when dealing with clients? Have any freelance stories to share?


This is where YARRP will go

About Nile

Nile is a 32 year old female from Southern Illinois. Nile is a mother of 1 son. She is also a web designer and developer, a graphic designer, and a public speaker, who exclusively designs using WordPress. She is currently a student working for a Bachelors in Business. She also blogs at FamousBloggers.net

Comments

  1. Hi,
    It was a good post. Light and innovative. Your advice and suggestion and point taken into consideration all deserve a good read. Good for newbies. :) It was good reading it.:)
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  2. So are you using a signable form to attain a legally binding signature on a document? If the signature isn’t on the document itself, the document can be modified outside of the signature and the signature may not be held as binding to the document. I know that Adobe’s advanced (premium) PDF tools allow for this but there are some other options as well. What are you using?
    Kim
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  3. Very interesting points you have observed, thanks for posting.

  4. Nile,
    I have actually benefitted from the written contract provided to me by the person providing the service. When this person did not deliver what had been promised, I responded in writing, restating what had been given to me in writing, requesting either a partial refund or additional services. Since it had all been in writing, the person complied and I received the services I had originally contracted for.

    Warmly,

    Dr.. Erica
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    • Hi Dr. Erica! It is great that you did have a contract for your project. I have had some in the past that have used the contract response and I often ask them to re-check their contract. While I do not mind working, I usually make sure to try to be as thorough as possible when putting my terms together so they are clear.

      I am still perfecting my contract skills, but I am hoping to release a mock-up contract that other web designers can use for their own projects.

  5. I totally agree with you. Freelancers should have a contract for each project. It is the best way to protect your interests.

    Thank you for sharing. I look forward to hearing some more stories about freelancers.
    Gary Young China Sourcing recently posted..China Sourcing: Setting Goals.My Profile

    • Thanks Gary! I have not been writing many articles on freelancing and a lot of times I blog on a subject when it is fresh on my mind… and a lot of times something similar has happened in the past.

  6. Hello Nile,
    i hope you are greatly in health,
    Yeah you are absolutely right that a freelancer’s should have a contract for every project and your 6 ideas should be include in each and every freelancer’s project :)
    this is my first comment on your blog and i personally feel that you have a great blog desing as well as writing :)
    nice sharing mate :)
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    • Thank you Praveen! A lot of times when I write about freelancing, I often think as a web designer. However, I have freelanced in other areas as well, and these points are effective for most projects. :)

  7. Hi Nile,

    Thanks for taking the time to share your thoughts on this.

    It makes sense to get things in writing, its nice and clear from the outset then; for all parties.

    I’d like to think that most people are reasonable, so once you have things in writing it can just be a gentle ‘nudge’ to remind them of their obligations.

    Once again, thanks for sharing.
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  8. hmm.. Yeah, I think this is very important for every Freelancer in this world.. :)
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  9. A Contract always gives opportunity to get more projects in future, because when a freelancer works with in contract then he/she get more work, and freelancing is all about trust and knowledge, if someone is bound with contract then chances are better for both parties.
    Nice post Thanks for the share…
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  10. I agree with the details presented, especially the communication part. It’s important for both the client and the contractor to be in constant contact during the whole duration of the completion of the project, This is to address any issues, concerns, clarifications on matters relating the job.

  11. I am a freelancer who has almost never maintained paperwork (read contracts). Although luckily i have been spared of any hassle so far, your post has motivated me to think about it. Thanks :)

  12. Hi Nile!

    ‘Share methods of how client can contact you’ is the major thing. One main reason of the failure of the freelancers in the communication gap between freelancer and employer.

    A good communication could be helpful in overcoming many flows in project and making your client happy. :-)
    Joe Clark recently posted..Google plus: heaven of SEO for webmasters in 2013My Profile

    • Yes, sometimes even emails get lost. I have had issues on both the sending and receiving side and have had to have a backup email address in the case I thought that an email was not received.

  13. Hey Nile,

    Thanks for posting this – contracting T&Cs for freelancers are so often overlooked. For me it’s as simple as just making sure both sides are on the same page about what is being agreed. I remember back in my early days of freelancing I agreed to take on a project for a guy who I considered a friend. We verbally agreed I’d be paid $x at the completing of the project. I figured I didn’t need a contract as he was a friend. However once the work was done and I presented my invoice he seemed shocked. He said he had thought I was doing it as a favour! He remembered our discussion about payment but said he thought I was saying that was what I would generally expect for such a job but for him they’d be no payment. We talked it though and he eventually agreed to pay about a third of the invoice.
    I learnt a huge lesson and have always had clear contracts in place ever since.

  14. Nile,

    Your absolutely right! I’ve gotten burned a few times helping people with there websites. If I had a contract I would have more say but I didn’t go that route. You live and you learn :)

  15. Nile, getting this issue perfected is one of the keys to running a successful business. My husband had to learn the hard way when a home remodel job went bad and he did not have an agreement that spelled out what was included and what was not. He always uses an agreement now. I commend you for learning and using a contract.
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  16. Nile, you have mentioned some very valid points in your post. Most of the time freelancers overlook terms and conditions and end up either being paid less or do extra work.

  17. I’m on Elance which has that mechanism in place where I get paid no matter what. I document, I send updates periodically and I keep everything. So what you went through was just nuts. Some people just believe that they can do whatever they want because they are “behind a computer.” Glad you won. Tacit agreements are never good in business if for no other reasons than they invite scope creep and lack of payment.
    D. Dixon recently posted..How To (Really) Use Twitter Beyond Counting FollowersMy Profile

  18. Hello Nile,
    i hope you are greatly in health,
    Yeah you are absolutely right that a freelancer’s should have a contract for every project and your 6 ideas should be include in each and every freelancer’s project
    this is my first comment on your blog and i personally feel that you have a great blog desing as well as writing
    nice sharing mate

  19. Great advice Niles. I rarely do freelance work these days, but the lessons I’ve learned about the value of a paper trail were learned by experienced during my years as a director of marketing for various travel industry businesses – everything, I mean everything is documented :-)
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  20. Hi Nile,
    Thank you very much indeed for sharing your experience and perspective. I totally agree with you that freelancers should draw up contracts to specify all the details and avoid possible troubles.
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  21. When i tried to make some money from coding, the worst thing was when i finish everything, my customer says: “I think it’s maybe better to do it on another way” and then i work, work, work and again he isnt happy, he saw somewhere something…

    So contract is the best and first thing to do… To avoid these things…

  22. Freelancers should have a contract for each project. It is the best way to protect our interests.
    Rahul recently posted..Actress Samvrutha Sunil Wedding VideoMy Profile

  23. Very nice write up. When I was first getting into freelance web design I fumbled around with creating contracts for different projects.

  24. Whether it be web design or writing, or anything dealing with a service, freelancers should have a contract for each project, no matter how big or small the task may be. For newbies in the…

  25. I am a freelancer i just got little tense at the end when my contract is getting over looked for new one only this is the tough part rest its a win win situation
    terry knight recently posted..SEO Rankings Locksmiths ChatswoodMy Profile

  26. Well explained the need of the contract for each project. It is must to make a contract before starting a project because, the freelancers cannot find handful of work all the time in a month and making a contract for some days lets them search for other before the completion of the present project.
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  27. Hi, really important to get contracts we have so many arguments at the end of a project and lost a lot of money, get a contract and make it watertight.

  28. Basically i am a freelancer web designer, Most of my clients do not know actually what they want. Sometimes they wanted me to do design the whole site from scratch even after putting much time on current design. I think taking upfront is the biggest safety for freelancers. It is really an informative and well written post buddy.
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  29. Thanks, I think to make the work formal there should be contract behind it.
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  30. Sometimes, when we deal with the public, we can inevitably end up with a nightmare on our hands – similar to the client you had. We have to do everything we can to protect ourselves.

    It seems like you did what you had to do to make sure you got paid for the services you rendered.

    now, I don’t do any work without a contract. It’s simply too risky to do otherwise.

    Thanks for shring this post, and have a wonderful weekend.
    Angela Arnold recently posted..Facebook Marketing MagicMy Profile

  31. What a great article.I am searching from the google last couple of days That about freelancer contracts.But unfortunately i din’t find any great way.But now my journey comes to an end.I must say What a great article.And once again thanks for this helpful and informative article.
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  32. I have been a freelance writer for years and feel from experience that your point should be well heeded. Your post is concise and well written and appreciate the reminder of your good content.
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  33. yes!!! i seriously agrre to this, because come client all of a sudden will become stubborn and start changing plans…. but having a contract changes everything
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  34. Great post! In my opinion, contract is good for medium to long projects. for short projects, I prefer to rely just on emails.
    Subodh recently posted..How Much Does it Cost to Create a BlogMy Profile

  35. Great post. If you don’t have a contract in place you’re more than likely gonna get burned. It’s that simple

  36. As a contractor I have to tell you that its a must to have a contract! I cannot express how important it can be.
    For example, I starred a job, and fulfilled it, and then my client
    asked for something we didn’t agree upon. If I had a contract
    I have something to prove. But without a contract, I had to do what he wants, otherwise I wouldn’t get anything. Freelances – beware!
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  37. Unfortunately, some freelancers doesn’t act very professional about this issue. This also makes it hard for us who are hiring them as well. When there is no written agreement between either side can ask for their rights if there is a possible dispute.

  38. mert kumru from melamin
    Twitter:
    says:

    Unfortunately, some freelancers doesn’t act very professional about this issue. This also makes it hard for us who are hiring them as well. When there is no written agreement between either side can ask for their rights if there is a possible dispute.

  39. Agreed with the author, if you are a freelancer then its necessary that not to have fake dealing with you, and it should always look like genuine work, chat, emails, and messages really not work in freelancer project sometimes, so always have to be a genuine and aware freelancer rather than to be cheated by someone!

  40. really useful article coz i am a freelazer and this tips will surely help me !!!

  41. Very important to have clearly outlined contracts. This way there is harmony between client and supplier.
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  42. Nice post ,
    I’m a freelance web developer,after reading this post i guess i need to ask my clients to sign a contract before proceeding woth project
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  43. great post :) ………….nice articles…great website…;)thanks a lot!!
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  44. I completely agree with your points. A clear cut contract is need to be done before any freelancing jobs, which should carry the details of the job. It is not only for safety of your work but also for professionalism.
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  45. Hi Nile,

    This is a post that can save someone a lot of heartache, time, and/or money. I used to do web design…a long time ago…and I made sure I had a formal contract for every job. It doesn’t matter what type of business you are in, contracts, unfortunately don’t mean handshakes anymore.

    Keeping good records of all communication is vital. I empathize with your example of your client. Sometimes people really believe they agreed to something, but they didn’t. It is your responsibility to protect yourself and have everything written and agreed upon before completing any project. Thanks Nile!

    Raena Lynn
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  46. Those are indeed some necessary informations that must be considered. I am also concerned very much with the estimated time of project’s completion because I have many experiences of delayed delivery of finished work.
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  47. This is a great piece of advice. Thanks! though I am not a freelancer. I may try it one day.
    Also, here is my website – fancy prom dresses

  48. This is a great piece of advice. Thanks! though I am not a freelancer. I may try it one day.

  49. This is very helpful in the development stage of our latest innovations

    I hope this gives benefits and outcomes for all of us

  50. I am trying hard to get a contact, and your guide line are superb that should help me in winning contracts at odesk and freelancers.

  51. Very useful tutorial, thanks.
    I have tried to join some freelance sites like freelance [dot] com, and oDesk. I think it will be hard for people newbie like me to find a job in those sites. Do you have suggestion for me how to easily got an project from those site?

    Thanks :-)

  52. Exactly opposite happened to me as I was the employer. I hired a freelancer to get some guest posts published which he was unable to do and started asking for payment of article that were not even published.
    I would advice that every employer should first create smallest milestone possible and check freelancer’s skills. If there are indications that he might create some trouble in long run, then dont hire him .

  53. Thanks for posting that article. It’s put me on to a lot of interesting stuff! (and I thought I’d already read the entire internet… haha!).
    Nile: Thanks, as always, for posting a clear, informative guide. This is such an exciting, overwhelming and huge field to try to break into.

  54. Good job there by the author , useful and worth-full ..

  55. Impressed with your writing skills Nile !
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  56. Impressed with your writing skills Nile !
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  57. yeah you are right instant contact to your client is the best way to negotiate what ever changes was made of…
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  58. signing contract is the legal way .. because verbal can be twist if you can for better result have contract
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  59. This post will be helpful to many newbie freelancers,,,some clients are really hard to work with and some times not only do their demands keep changing but also some dont pay after a project
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  60. I just want to shout, “Yes, yes, Yes!”
    I know people Nile who have come unstuck when doing business with a friend because they did not take the time to sign a contract. When things go wrong and the seek advice revealing that in fact there is no contract in place. The reason they all give ‘Well he was my mate so I didn’t bother’ my thought is he is a mate outside of business and in business smart folks work with contract. I think your post will make sense to all… good sensible advise! :)
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  61. I completely agree. Personally I think a contract should be in place for any project. It sets expectations and keeps everything in line because it’s right there in black and white and pre-established.
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  62. I think with any form of freelance work these days you need to have a written contract to protect both yourselves and the purchaser. With emails flying backwards and forwards it’s easy for misunderstandings to occur and in the end it all gets messy.

    I simply outline the works in detail, the time frame, and the cost of the job. You may laso need to cover yourself with a disclaimer and a copy of your trading terms and conditions as well.

  63. I much prefer a deposit, especially when the client is in another country. Cash up front = more security ;)

  64. This is actually one of several superior posts associated with things that I’ve please read on that topic recently. Fantastic perform.

  65. Very important to clearly define in the contract what the project will entail otherwise the client will keep asking for more and more amends. This can go on for ever.

    Don’t be afraid to say “sorry that will cost extra”. Would you expect a builder to build an extra wall without adding to the cost? No, so why should you do more work for free?

  66. Hi Nile, I can relate so well to your story. being a freelancer, I have faced this situation so many times in the initial years of my freelancing career that I have made it mandatory for all my clients to have a contract or fund the escrow (if available) so that I get paid for all the time and efforts I have spent on doing that project. I rarely ask for up fronts, but escrow is a must if the buyer is from a different country.
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  67. Hie Nile,

    Inspiring and full of enthusiastic post..!!!

    As freelancer as well as freelancing is increasing. Freelancers should always contact each other what the person actually demands and what not this really helpful in doing the work.
    Sneha recently posted..10 World’s Richest WomenMy Profile

  68. Hey Nile,

    I used to freelance, but just found it frustrating because I could design a site for someone and customize it like crazy and only make 2,000. This could drag on for 1-3 months. However, I can develop a site/blog for myself and make much more and it’s residual income.

    Same thing with SEO. Half the time I would make all the onpage changes start building links and the person would change their homepage and screw up all the onpage work I did. Then wonder why they lost their rankings.
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  69. hi Nile,
    I’ve been working as a freelance content writer for over 1.5 years. now, and i have to say that after reading your post, i realized that i seldom had any contract with me, all the transactions were always made over emails, chats and phone. Nonetheless, the current organization where i work, this is not the case, they have recently rendered me my latest work’s contract

    thanks for this important info
    Shall always keep it in mind.
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  70. Strongly Agree with you,I have experience it has in my early days I was not making any type of contracts and what my client do was that after work they block me on Facebook and on other Profiles and i was no where,After doing a lot of hard work.
    mohit recently posted..TricksTreat Launching PostMy Profile

  71. Hi Nile
    Working on a contract base is really very helpful for a freelance writer. It can be used as a reference for other projects in future. And also taking contract base projects help a freelancer to complete all the work in time.
    Thanks for sharing this post with us
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  72. Absolutely Niles. We have been burned once or twice due to not having a clear contract in place. We have also encountered clients who fail to understand that time is money. They will keep coming back for corrections, tweaks and changes which are really their fault in the first place.
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  73. i am not freelancer so i don’t know about this
    but what if the project is like 5 dollars are we still need it ?
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  74. hello nile

    Your absolutely right! I’ve gotten burned a few times helping people with there websites. If I had a contract I would have more say but I didn’t go that route. You live and you learn
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