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Contracts are Good Business
Adrienne Turcotte
Many designers start their freelancing careers without the use of a written contract. Some don't feel that it is necessary and others believe that asking someone to sign a contract shows a lack of trust, particularly when they are working with a friend or family member. It is important to realize that the use of a contract is not only a standard business practice, but that it exists to protect the rights of the client as much as those of the designer.
What is a Contract?
Simply put, a contract is a legally binding agreement between two (or more) parties in which each agrees to give something of value to the other. This can be a product, a service, or some form of financial compensation. Contracts can be oral (spoken) or written, but since oral contracts are not documented it can be difficult to prove their existence, let alone the terms that were agreed to. A written contract protects the best interests of all parties in a business transaction.
Why Should I Use a Contract?
A contract explains the rights and responsibilities of everyone involved. Everything is spelled out before work is begun, and since the people involved know what to expect it makes the whole process go more smoothly.
A contract shows good faith; if a client refuses to sign a contract (and some will balk at the mere mention of a contract), chances are good that they are not a client that you want to work for! There are many wonderful clients out there who appreciate a designer's knowledge, talents and guidance, but there are also plenty of "takers" out there who want something for nothing and will go to surprising lengths to get it. Most of the time there is little recourse in these situations, and that is the risk that you take by working without a contract. Unfortunately, this is a lesson that many designers have to learn the hard way. (For more information about what you can do if a client has used your work without paying it, see this excellent article by Pariah S. Burke: Coping With Clients Who Use Your Concept Design—Without Paying Designers often resent the fact that we are not taken seriously as professionals, but many designers then fail to employ professional business practices. Since most non-designers don't quite understand what we do for a living, many mistakenly believe that most of the work is done for us by our software. Many people who have not worked with designers before look at us as hobbyists who like "playing on the computer to make cool graphics," and if that's the image that we portray we can attract clients who will treat us exactly that way. A contract shows that you mean business and that you take your work seriously.
You can use a contract even if you're working with a client over a long distance. You can email a signed PDF of your contract to your client, who can then print it out, sign it, and send it back to you by fax, email, or even by mail.
Working with Friends and Family
When working with a friend or family member, the use of a contract can help to separate your business relationship from your personal life. Failure to do so can be problematic sometimes, even resulting in permanent damage to your personal relationships. If everyone understands the terms of the contract, there are no hurt feelings on the part of the friend (who might have unreasonable expectations if these are not addressed before work begins) and you will not end up feeling like you are being taken advantage of (as can be the case when a friend or family member requests endless rounds of revisions, or if they do not respond to your questions in a timely manner and then expect you to work overnight to meet their deadline).
A friend might be initially taken aback when you ask them to sign a contract, but there are tactful ways to deal with this so that it does not cause offense. My contract is titled "Project Agreement" rather than "Contract for Services" and I find that it is generally well received. The basic document is modified for every project, and I do my best to keep it limited to a single page when working with friends or family so that it doesn't seem impersonal or overwhelming. The agreement simply explains each party's responsibilities (including the fact that if the client causes any delays from the schedule that we have agreed on, the job may be delayed accordingly). The thought of signing the project agreement would certainly be less upsetting than the prospect of missing a deadline if there were unexpected complications with the job. In a case like this I believe that a contract can actually help to protect the friendship, and prevent a lot of frustration in the long run.
Next month we will take a look at how to create a contract that you can use for your freelance business.
Copyright (c) 2008, Adrienne Turcotte, All Rights Reserved
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