Introduction to Freelancing ��Lecture II

By: Dr. M. Usman Ashraf

Head of Department of Computer Science

GC Women University Sialkot.

How To Make a Freelance Contract: 10 Clauses To Include

Why should freelancers have a contract?

• Reduces disagreements or misunderstandings and outlines how to handle them if they arise.
• Both sides acknowledge and agree in advance to payment, time, and deliverables.
• Legally binds the parties to the terms of the contract.
• A contract can protect both parties, including the contractor.

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Common issues freelancers face without a contract

Unfortunately, most freelancers don't even think of having a contract until they run into issues. Regardless of your past experiences, freelancers can face many potential issues without an agreement such as:

• Non-payment
• Projects with no bounds and scope creep
• No way to enforce what was discussed
• Additional legal ramifications and liability
• Long and unnecessary legal battles

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How to write a freelance contract: �10 elements to consider

1. Description of work and services

• Establishing a project scope within the contract is crucial to setting the work expectations during the project.
• Start date
• Scope of service (detailed description of the project and milestones)
• Deadline and contract end date
• Payment rate and schedule

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How to write a freelance contract:

2) Payment terms

Once you have completed all of the tasks specified within the contract's description of work and services, you have finished a crucial part of the freelance contract. After completing a project, there's nothing worse than not receiving prompt payment for the work you delivered. 

• Will the contract be paid according to an hourly rate or a fixed price?
• Is there a minimum or a maximum number of hours that will be billed?
• When will you get paid? On delivery, 30 days after delivery, at specific milestones?
• Will you receive a portion of your total fee as an upfront deposit?
• If your client doesn't pay on time, will there be a late fee?
• Who is responsible for project expenses and material costs?

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How to write a freelance contract:

3) End product ownership rights and licenses (copyrights)

• Freelancers often include this clause to establish who owns the work. Since the client is paying you to do the work, in most cases, they're going to require the work contract to grant them full rights and ownership of all aspects of the project deliverables.
• On the other hand, if you retain ownership of some elements of the work, such as proprietary software that you developed, you'll need to establish the client's rights and their usage terms.
• This clause could also address showcasing the project in your portfolio. Before including any client work in your portfolio, it is crucial to get permission, and establishing that permission at the start of the project can make that conversation more straightforward.

How to write a freelance contract:

4) Terms and termination�

• Including a termination clause or right to terminate in the contract creates a process for ending the freelance contract if the relationship is not working. Throughout the agreement, either party could recognize that things aren’t working out due to poor communication, missed deadlines, or any other reason. In this section, you can outline the grounds for termination and the expenses or penalties associated with ending the contract early.
• Freelancers often consider this section vital to include, even if you have a specific deadline and contract end date. It becomes even more critical for ongoing work because it provides both parties the ability or time to prepare for the loss of income/work product when the contract is terminated.

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How to write a freelance contract:

5) Competitive engagements

As a freelancer, it is important to communicate to clients the exclusivity of your services. Your client may not want you working with them while also helping the competition.  Here are some questions to consider when creating the competitive engagements section of your freelance contract.

• Will you engage in any business or activity that competes with any business or service of the client?
• How will conflicts of interest be disclosed for overlapping clients?
• Is the geographic area restriction for clients limited to the same type of business?
• What is the exclusivity duration? Does your contract allow you to work for competitive businesses after the work is completed?

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How to write a freelance contract:

6) Non-disclosure, right to disclose, and confidentiality

• To protect both parties, it is crucial to include a clause covering the mutual non-disclosure of any confidential information.
• As a freelancer, you may receive information related to your client's business that must remain private and confidential. 
• This information could be client lists, business strategies, proprietary processes, secret recipes, financial information, and more. 
• This clause may standalone, or it may be necessary to have a separate and more detailed non-disclosure-agreement (NDA)

How to write a freelance contract:

7) Changes and revisions

Creative work can be subjective. This clause outlines how many (if any) revisions are included for the project. This can protect a freelancer's time from excessive scope creep caused by clients wanting many rounds of time-consuming edits and changes.

• You can specify the rate you will charge for additional edits or revisions.
• It may be necessary to define what constitutes a "round", "edit", or a "revision," so that all parties are on the same page about changes to the project deliverables.

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How to write a freelance contract:

8) Indemnity clause

• If something goes wrong, who is responsible?
• In this unfortunate situation, both parties will want reimbursement if the other party breaches the contract.
•  also known as a hold harmless provision, is a clause used to shift potential costs or responsibility from one party to another in the event that certain circumstances occur. 

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How to write a freelance contract:

9) General clauses

• A general clause is used as a catch-all for any additional items added to the contract. This section can include legal disclaimers, protections, and other statements.

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How to write a freelance contract:

10) Party signatures

• In order to have a legal contract, both parties must agree to it. This is most commonly and easily demonstrated by having both parties sign the contract. So, make sure that both you and the client sign the document before starting your next project.

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Thank you for your consideration.

Any question?

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