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Step by step guide on freelance contracts 2021

8 Mins read

Here is a detailed guide of everything you to got to know about freelance contracts.  

What is a freelance contract?

Freelance contracts are a type of freelance agreement between freelance contractors and employers. They exist to protect both parties in the freelance relationship. Freelancers need freelance contracts because it sets out the terms of their freelance work, such as payment, project details, deadlines, and more so that everyone is on the same page.

 It also helps freelancers get paid for work completed. On the other hand, it also provides a guarantee to the client that good quality work will get completed on time and that will be worth the client’s time and money.

Types of contract-

There are two types of freelance contracts. 

Formal Contract-A formal contract is signed between the freelancer and the client which is legally binding. Both parties should well understand all the terms and conditions of such a format so there are no issues later. This type of contract is mainly used by big organizations.

Informal Contract-Informal contracts are more like a letter of agreement between the two parties stating the terms of agreements. This form of contract is used by small businesses or individuals requiring a service for personal use. Informal contracts are used more between people who are acquainted or friends. However, there could be loopholes from a legal point of view.

Advantages of a freelance contract-

Freelancers are people who work independently and often take on a number of jobs from different people coming from various walks of life. Freelancers have to manage not only their particular field of work but also learn to manage their finances inclusive of billing and accounts, clients relations, marketing for themselves along with many others. Many of these tasks do not require creativity but are, instead, routine paperwork such as drafting contracts. Drawing up a contract legally protects both the freelancer and client.

A freelance contract will provide the following benefits:

  • Ensures clarity – once marked, this formalized understanding outlines what both the consultant and client can anticipate for what cost and quality.
  • Gives a Reference – Serve as a reference on the off chance that differences emerge, but a contract gives something the freelancer and client can look up to for clarification.
  • Builds a healthy relationship– a freelance contract benefits everyone involved, which makes the working relationship better.
  • Increases trust-Build confidence in the client and make sure freelance services are compensated properly.
  • Commitment – A contract is basically a written commitment that binds both sides together.
  • Looks professional – A freelance contract seems more professional
  • Save time – In case, a conflict arises between the two parties a written contract would save time in resolving the issue.

Tips for Writing a Freelance Contract

Following are some points to keep in mind while drawing a contract

  • Unambiguous Language-Do everything you can to avoid ambiguity in your language.
  • Detailed scope of work-You should state in detail all work you plan to perform, along with quality expectations, timeframes, deadlines, and pricing. The freelancer should know what the client expects from them, and vice versa.
  • Simple terms-The contract should be written in clear, simple language.
  • Easily readable-create an easily readable contract by utilizing appropriate headings and subheadings; use bullets and lists to break up complicated sections.

What to Include in a Freelance Contract?

Here are some basic aspects within the contract that are very essential which will help you keep out of trouble

  • Recitals – include the project’s 
  1. Who – between who is the contract being signed
  2. What – what services are to be provided by the freelancers
  3. Where – location of both the parties
  4. When – period of validity stating a start and an end of the contract and when are the deliverables to be expected by the client.
  5. How – how many revision requests will be handled?Even if you think both parties know this information, put it in the contract anyway to avoid misunderstandings. Include a “single point of contact” clause to limit your communications with one person so you aren’t bombarded by revision requests from multiple people.
  • Duration – Getting an estimate of the project’s duration is an important part of the project planning process. You might need to leave some additional time open after a project is completed to help with revisions and media integration.Ensure that the time frame is documented in the contract’s terms and conditions to prevent the client from taking advantage of you. Don’t forget to include deadlines in the contract, even if you dislike them.
  • Timeline – Include time frames regarding when the client must respond with feedback or concerns so you aren’t waiting to hear back. Having a deadline will also allow you to schedule future work.
  • Deliverables – The client should know the details about the final project and how it will be delivered. Stating delivery details upfront keeps you from having to guess what types of files they can accept and makes sure you’re both on the same page.
  • Remuneration – Freelancers usually charge by the hour. Payments terms should be clearly mentioned in the contract to avoid any confusion later. If you are planning to charge by the hour expected number of hours should be added along with additional charges in case if time duration increases or there are changes in expected deliverables.
     Some freelancers also charge a certain percentage of the total amount based on milestones delivered. Get rates in writing during the project’s initial stages, and make sure the client agrees with the way they’ll be charged. You may start off by taking a small amount as a deposit.
  • Cancellation Policy – In some cases, for unexpected reasons, a project might be canceled after you’ve begun work on it. Without a contract, you probably won’t get paid for any of the work you’ve done. Including a cancellation clause in the contract saves you from losing valuable income if the job gets axed. Most freelancers charge a flat percentage from 25 to 50 percent.
  • General conditions – These may include as per the law of the land, non-disclosure agreement, non-compete agreement, confidentiality, etc. Big organizations usually stress these as they are well aware of the losses they would face if a freelancer does not comply. 

Freelancer contract template

Enter Logo

Enter the name of the service

Example- UI/UX SERVICE AGREEMENT 

This Agreement is made and entered into this enter day, enter the month, enter year by and between: 

Name of the company incorporated under the laws of the name of the country, having its principal place of business at Address of the client, represented in this Agreement by name and position of the client, duly empowered to this effect, hereinafter referred to as name, of the one part, 

AND 

Name of freelancer incorporated under the laws of the name of the Country as Sole Practitioner, having its principal place in the address of freelancer, represented in this Agreement by name and position duly empowered to this effect, hereinafter referred to as the name of the second part, 

Recitals

WHEREAS the name of the client is desirous of engaging for the services of the name of freelancer for a period of Number of months. 

WHEREAS name of freelancer represents to name of the client that he is qualified, experienced and able to perform name of services for the name of client’s requirements during this contract period. 

NOW, THEREFORE, in consideration of the foregoing and the mutual representations warranties and covenants hereinafter set forth, the parties hereto hereby agreed as follows: – 

The recitals set forth above constitute an integral part of this Agreement. 

Period of Validity-

This Agreement will take effect on the Current date, and shall be valid for a period of Number of months. 

1. Name of the freelancer will be responsible for providing services as advised in the quotation. 

2. Name of freelancer will maintain complete secrecy with regard to the work done for and on behalf of the name of client. 

Scope of work-

A detailed scope of work should be mentioned clearly stating each and every deliverable

Deliverables & Milestones-

To be mentioned in detail as per nature of work

PHASE 1  along with the date of delivery

25%

PHASE 2   along with the date of delivery

50%

PHASE 3  along with the date of delivery

75%

PHASE 4  along with the date of delivery

100%

Point of contact-

name of team member/members from the client-side who would communicate.

Remuneration-

Project-based-

  1. A total remuneration of the amount along with currency will be payable to the name of the freelancer by name of the client. This fee is inclusive of all services as agreed. 
  2. 25% deposit to begin, with the remainder due upon completion of each of the four project phases as per the quotation. 
  3. No other charges or deductions will be applicable unless otherwise agreed to in writing by name of client and name of freelancer. 

Per Hour-

  1. A total number of hours should be mentioned along with the amount along with currency as per the quotation.
  2. This is applicable to only the scope of work required in the quotation. Any additional work would be charged separately. 

General Conditions 

1.This agreement shall be construed and governed by the laws of the name of the country. 

2. Once signed by both parties, this agreement is binding and shall be irrevocable. All terms and conditions contained herein shall be fully complied with. 

3. Name of the freelancer agrees that he will be the sole author of the Work, which will be original work by him, free of plagiarism. Name of freelancer agrees to use reasonable care to ensure that all facts and statements in the Work are true and that the Work does not infringe upon any copyright, right of privacy, proprietary right, right of publicity, or any other right of a third party. Name of freelancer will cooperate with the name of the client in editing and otherwise reviewing the Work prior to completion and launch as per the number of revisions agreed. Name of freelancer will cooperate with the name of the client if any complaints, claims, or litigation should arise regarding the Work. 

4. Name of freelancer acknowledges that he may be furnished or may otherwise receive or have access to information which relates to the name of client’s past, present, or future products, vendor lists, creative works, marketing strategies, pending projects and proposals, and other proprietary information which gives the name of the client an opportunity to acquire an advantage over its competitors who do not know or use it (the “Proprietary Information”). The name of the freelancer agrees to preserve and protect the confidentiality of the Proprietary Information and all physical forms thereof, whether disclosed to him before this Agreement is signed or afterward. In addition, the name of the freelancer shall not disclose or disseminate the Proprietary Information to any third party and shall not use the Proprietary

5. Name of freelancer and name of the client shall indemnify and save each other, harmless from and against all suits, actions, proceedings, costs, expenses, damages, assessments, claims, demands or levies, whatsoever suffered or incurred by each other, resulting from or arising from or in connection with or in any way related to its duties and obligations under this agreement and in relation to each other’s performance of services under this agreement, except such cost/claims/liabilities which are due to gross negligence or wilful misconduct on the part of the name of freelancer and name of client, its agents, and employees.

Cancellation Policy –

As per industry standards

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their duly authorized representatives on the day and date hereunder mentioned. 

For and on behalf of the name of the client/company 

Name:  Position:   Date : Seal 

For and on behalf of the name of the freelancer 

Name:   Position:  Date: Seal 

Conclusion

A freelance contract is definitely a safe bet rather than entering into a working relationship with someone completely unknown. It gives the clients confidence that work will be delivered on time and also ensures the freelancer that he need not worry about the money. 

You can find many freelancers on Bawabba from various fields.

Frequently asked questions-

What is the meaning of a freelance contract?

A freelance contract clearly states the terms and conditions agreed upon by the employer or client and the freelancer. It provides a basis for a mutually healthy relationship between the two parties. 

Do freelancers need contracts?

A contract is important as an oral agreement would not stand valid in a court. It saves clients and freelancers the trouble of any misunderstanding leading to a conflict. A written contract is always a better option.

How do I get a freelance contract?

A freelance contract is generally provided by the client. However, a freelancer may also draw up a contract if he wishes to. 

How many revisions are generally provided?

A number of revisions can be provided depending on the nature of the work. Some freelancers provide one or two while some may even go up to 5.

Is it legal to freelance?

Freelancing has become legal in many countries. However, you need to check with the country of residence for the same. 

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