Last month we looked at some reasons to use written contracts. This article will help you determine how to draft a contract that you can use for your business.
Where to Begin?
You can write your own contract from scratch, or use a contract template as a starting point, but either way you will want to make sure that your contract is customized for your needs. A good way to do this is to look at a variety of freelance design contracts and taking note of any relevant points that you have not already addressed. There are many sample contracts available online, just a Google search away.
Don't be intimidated by the complicated wording that you see in some contracts. You do not have to use Latin phrases or other complicated "legal speak" in your contract to make it valid. Just be sure that it is written clearly, in plain language. Try to make the contract all-inclusive so that everything is spelled out in one document instead of assuming that you don't need to address things that you already discussed with the client in person, on the phone, or by email.
It is a good idea to have your contract reviewed by a lawyer before you start using it to make sure that your terms are legally binding and that you haven't left out anything important.
What Should be Included?
Contracts can range in length dramatically depending on the complexity of the project at hand. Even a basic contract should include the following:
• What is included in the estimated price? If you are designing a logo, you might include 3 concept designs and 3 rounds of revisions in your quoted price. Be sure that the client knows what is included. (It is a good idea to limit the number of revisions that will be provided because it allows you to make the changes in efficient batches instead of one at a time, which can easily end up eating into the time you set aside for other projects.)
• The estimated cost for the job and any additional fees that may apply. Let the client know up front about any additional charges that they might encounter. A statement such as "Additional corrections will be billed at a rate of $X per hour with a minimum charge of 1/4 hour." tells the client what to expect. You may also want to include the prices for additional proofs and supplies, or a clause that simply states that additional charges may apply if the job exceeds the specifications outlined in the contract.
• What will be delivered, and when? Estimated dates of delivery for concept art, revisions, and an estimated completion date should be included. Be sure to mention that delivery dates may change if the client does not respond in a timely manner. You can include dates in your schedule for the client's responses in order to help keep the project on schedule.
• Provisions for cancellation of the job. Sometimes a client has to cancel a project before it is completed. This can happen for a number of reasons, including budget cuts or the rejection of initial design concepts, to name a few. Be sure to include a provision in your contract that allows the client to opt out (if necessary) before the job is complete. You should also specify the cancellation fees (sometimes called "kill fees") at various stages of the project so that you are still compensated for the time that you have put into the job if it is cancelled.
• Ownership and usage rights. What files will be turned over to the client upon completion of the job? Who owns the concept sketches, finished art, stock photos or fonts purchased for the job, and native files? What can the client do with these, and what rights do you as the designer reserve? Be sure to specify that you reserve the right to use any designs in your portfolio or personal promotional efforts if this is important to you.
• Payment terms. It is a standard practice to require a deposit before work begins on any project. For a small job this may be as much as 50%, whereas for a larger or longer-term project 1/3 of the estimated total is a common amount. Also specify when payments will be made, in what amount, what types of payments wll be accepted, what (if anything) will happen if the payment is late (or not forthcoming at all).
Summary
Contracts exist to spell out the rights and responsibilities of both parties in a business transaction. They also show potential clients that you take your work seriously because you employ professional business practices. It can take time and money to draft a contract that meets your needs, but it is well worth the investment.
Copyright (c) 2008, Adrienne Turcotte, All Rights Reserved
