Contracts: Why You Need Them & What To Put In Them!

Let me start off my saying that I am not a lawyer. It's a good idea to consult an attorney to go over your contracts, or even contact an attorney who sells contract templates, like Christina Scalera. With that said, I'll be honest and tell you that I've always created my own contracts. I have done my fair share of research and have been revising and improving my contract for years. 

As I've mentioned before, I like to call contracts "letter of agreements", or "client agreements" because I believe it sounds friendlier and more approachable. 

Why do I need client agreements?

1. They protect you, but they also protect your client and your relationship with your client. 

2. They minimize client delays and help get you paid on time. 

3. They eliminate client confusion and set the expectation. 

4.  They communicate that you are professional and serious about your business.

 

When do I need a client agreement? 

ALWAYS. Make it a rule of thumb. If you want to get paid, always have an client agreement in place. 

What do I include in my client agreement?

Here is an outline of what I include in my client agreements. This outline is especially helpful for fellow designers. 

The Project: Explain what services are going to be performed. Be specific in explaining the deliverables. It's also important to include what's NOT included. For example, if you're a web designer and you don't provide the copy, specify that. 

Due date: Include the project due date that has been decided on by you and the client. But don't forget to mention that concept revisions, extensive alterations, or a switch in design may result in a delayed completion date.

The Cost & Payment Terms: Include the cost and explain how you will be receiving payment. For example, I require two payments, so I say that the first payment is due before the work begins and the second is due before the files are delivered. 

Late Fee: Include a late fee and clearly define the penalties. For example, you can say if the payment is not received within 15 days of the invoice date, a late fee of $100 will be imposed. It's also a good idea to add an interest rate. So for example, you can say If the payment is more than 30 days late, your company may assess interest equal to five percent (for example) of the unpaid balance for each month. 

Additional Expenses: If there are any expenses that you will not be paying for, list them. (Printing, fonts, stock photos, etc...).

Additional Services: Explain what services fall outside the scope of the project and include how much these additional services would cost. So If a client comes to you and asks you to do something that falls outside the scope of the initial project, you can point to this and then submit a new proposal/contract. 

Revisions: Include how may rounds of revisions are included. It's important to clearly define what a "round" is. Then, state what it will cost if further revisions are requested. For example, I charge an hourly rate for further revisions. 

Errors: Explain that it is the client’s responsibility to check proofs carefully for accuracy in all respects, ranging from spelling to punctuation and that you are not liable for errors or omissions. You should also state that if errors are found after the final approval is made, the cost of a reprint is the client’s responsibility.

Sharing: I always include a sentence explaining that I can display the work created for the client on my website and social media platforms. 

Acceptance of Terms: Lastly, don't forget this very important clause: The Client promises to pay for the services rendered by "your company". By signing below, client agrees that she/he has read, understood, and is considered legally bonded to these terms.

I hope these tips help you when drafting up an agreement of your own!