When opportunities arise for contract workers, a well-drafted contract signed by both the freelancer and the firm will benefit and protect both parties.
The gig economy is growing faster than ever. According to the Freelance Forward Report from Upwork (the most comprehensive study of the US independent workforce to date) 64 million Americans performed skilled freelance work in the past year. This is an all-time high, representing nearly 40% of the US workforce. The World Economic Forum predicts that more than half of the global workforce will be part of the gig economy. Some projections expect contractors will outnumber traditional 9-to-5 workers in their respective fields.
This shift is a win-win as it gives businesses the opportunity to tap workers from more diverse backgrounds, geographies, skill sets, and talents. But it also calls for both parties to professionalize how they engage in business.
Whether you’re a legal counsel, accountant, a creative web designer or storefront muralist, consider creating your own freelance contract template that you can customize for each job. This document will streamline how you establish yourself with each new client. For the client side, a solid contract will ensure business owners are engaging in a professional partnership that will deliver results, and within set deadlines.
Here is a guide for creating a freelance design contract, paving the way for a harmonious and productive work experience.
What goes into an effective freelance design contract?
A freelance design contract is a legally binding agreement between a contract worker and their client (be it an individual or a company) to complete the obligations listed in the document. It lays out big-picture responsibilities, as well as detailed terms and conditions. Key components include project introduction, timeline, copyright ownership, and payment terms. Most importantly, it outlines how and when the freelancer gets paid.
Here we’ll walk through every part of the contract and help you understand why each section matters.
- Outlining the Scope of the Project
Start by clearly defining the project scope, including the specific tasks and deliverables, the client’s expectations, requirements, etc. The more detailed this section is, the less room there is for errors and misunderstandings. Most importantly, include the start date and estimated completion date that both parties have agreed upon.
2. Payment Terms: How and when
This is one of the most important sections in the contract. Specify the terms, including how and when the payments will be made. When drafting this section, consider the following:
- How much will the project cost?
- What is the payment method? PayPal, Venmo, Zelle, cash, checks, etc.
- If the payment is delayed, will there be any late fees or interest charges for overdue payments?
- If the freelancer works with international clients, what is the currency for the contract?
- How and when should the freelancer invoice the client?
To make sure payments are on time, consider drafting a detailed payment schedule to smoothen the transaction processes and prevent miscommunication.
3. A comprehensive list of Products & Deliverables
This section clarifies what your client will receive upon project completion. Create a comprehensive list of the deliverables, including nitty-gritty details such as file formats and design variations. You may also include the delivery dates for each asset (e.g. logos, banners, animations, etc) .
This level of detail may seem unnecessary and more beneficial to the client–but keep in mind that a solid contract will also protect you from unexpected tasks that make you work countless hours for free. It is never too late to add a payment condition for any additional design products that your clients might request along the way.
4. A set number of Revisions or Changes
For creative freelancers, like web designers or advertising consultants, offering a set package of design services should include a set number of revisions. Make sure the contract includes the maximum number of changes and edits to a project. This protects the freelancer from an endless merry-go-round of back and forth revisions.
5. Copyright ownership and Intellectual Property (IP) protection
Many agencies and freelancers unfortunately find this scenario all too familiar: You pitch a client with your proposed designs, but they reject it and you don’t get the job. Weeks later, you find that the client used elements or completely copied your original designs in their live campaign.
This is where a freelance contract can protect you. Copyright ownership in the contract refers to the allocation of intellectual property rights of the work created by the freelancer. If a freelance designer drafts a logo or banner that goes unused, who has the rights to the drafted artwork after the project is completed? This prevents disputes and ensures both parties are on the same page regarding the distribution, use, and control of the design work.
6. Confidentiality agreement
Similar to copyright agreements, terms regarding confidentiality should also be outlined. As a contract worker, you are an outsider working on the inside, getting access to a client’s creative ideas, passwords and other personal data. Reassure your clients that their information is in secure hands.
7. Methods of Communication
This might seem like a minute and easy detail but the methods of communication can make or break how a freelance partnership plays out. Some prefer calls and text messages, while others prefer strictly email. Further, with communication tools like Slack, Microsoft Teams, Google Meet and Zoom, it’s important you are both on the same page when it comes to how you will meet. Last but not least, there are project management platforms like Asana and Trello–be sure that both parties are trained on and can access these accounts.
8. Get local with Legal Compliance
To make the contract legally effective, it’s important that the contract complies with relevant copyright laws and regulations in your jurisdiction. Consult with a legal professional to make sure your contract aligns with the legal requirements in your state.
9. Rightful Termination
Not all partnerships are meant to be, especially in the design realm, where creative differences can arise. You should always clarify the conditions under which either party cancels the project and terminates the contract. Make sure to clarify who will own the copyright of the work produced thus far, if any, and whether any termination fees are involved.
10. Make it Official: Signed and Dated
Last, make sure to ask your client if they have any questions about the contract. In other words, confirm that they have actually read the document thoroughly and carefully to avoid any surprises. More importantly, make sure both parties have signed and dated the document to ensure that the freelance contract is legally binding. Some freelancers are so excited to get started on a project that they eagerly get to work before the contract is signed and dated.
Other notes to keep in mind
When you finish the very first meeting with your client, aim to draft the contract right away and send it to the client before you start your design process. If you are new to the freelance world, or need help writing a freelance design contract, there are some model templates from platforms such as Bonsai, The Contract Shop, PandaDoc, etc.