5 Points Every Freelancer Should Know About a Contract

January 28, 2021
by Jason Dulay 
Jason is the founder and CEO of Work from Home Roadmap and VA Bootcamp. Aside from teaching Filipinos how to succeed working from home, he likes traveling, playing board games, and drinking coffee.

Imagine this. You were smiling from ear to ear after an interview with a client. You thought, “I nailed it! Goodbye office politics, fixed salary, traffic, and the dreaded Monday mornings. I can finally start living the dream of working from home as a freelancer. Freedom is here." 

But not long afterwards, your newfound joy is shaken with these challenges. 

  • Your client demands some last-minute changes without adjusting the deadline.
  • Additional tasks just keep coming that were never discussed during the interview. You were expecting additional pay but that wasn't the case.

Suddenly you're no longer sure if you made the right decision. Your anxiety level goes up and you wonder if there are other freelancers out there who've been burned too. 

You do not want to get into such troubles. Fortunately, there is a straightforward way to prevent messy situations and that’s through a contract. If you read until the end, I’ll show you a template that I used with my previous clients. Trust me, it made my life so much easier, so I’m excited to share that with you. 

(Disclaimer: This blog post is for informational purposes only and does not constitute legal advice.)

1. What is a freelance contract?

By definition, a contract is a binding agreement between two or more persons or parties, especially one that is legally enforceable.

But don't be intimidated by that. A freelance contract is simply a written agreement between you and the client. You can create your own or find a free online template wherein you’ll just fill out all the information. 

2. When to write one?

If you’re being hired through Upwork and other freelancing platforms that require clients to send out a contract, then you’re off the hook. 

But if you’re the one who approached the client, it’s recommended to have a freelance contract especially if you’ll be working on high-value projects that can take weeks or months to complete.

In some cases, clients would trust you to organize everything that you have agreed to do in one document.

3. What is the main purpose of a contract?

Keep in mind, a contract doesn’t guarantee full protection from clients who do not keep their end of the bargain, especially if they are outside the Philippines. But signing one has a lot of advantages.

The main purpose of a contract is to have a properly organized document where you clearly determine your scope of work, set of tasks, rates, payment method, and other important aspects to consider while working as an independent contractor. 

If there’s ever any doubt down the line, simply refer back to it and you’ll have far greater chances of getting blurred lines resolved or making things work in your favor. 

It can protect you from being mistreated and encourages healthy relationships with your clients.

4. What to include in your freelance contract?

What you put in your contract depends on the industry and the kind of work that you do. What I’m going to give you are the most common elements to consider when writing your freelance agreement. 

Scope of Work

This is a detailed description of the service you’ll be delivering to your client. For instance, if you are hired as a  Social Media Manager, you shouldn’t be doing other tasks that have nothing to do with this role. It’s ok to go out of your way and be of help as you build good relationships but not to the point that you’re already working for free. Remember, there’s a market value for your hours. 

If you own a grocery store, you won’t allow any customer to walk away with a bunch of free stuff. It’s the same thing when you’re doing freelance work. 

Work Detail

When I was taking on web design projects, I would include work detail in addition to the scope of work. This is where I break down the specifics of what I need to do to successfully deliver to my clients.

Terms and Conditions

While developing and tailoring this part for each client may take some extra time, it’s well worth it if it helps you get paid on time and move forward in your business relationship. 

You want to be as clear and explicit as possible. Are you charging by the hour or by the deliverable? How much is your rate and what’s the payment method? How many revisions can you accommodate? How will you resolve disputes, etc.? There should be no gray area so carefully think about and review every single point here. 

To make things easy for you, allow me to share this proposal template that I used for my web design clients. Feel free to refer to this as a guide.

5. How to handle a breach of contract?

I do hope that this is something that you don't have to deal with but it's better to be equipped than to be caught unprepared.

If a client starts deviating from what you have agreed upon initially, take the courage to point it out at an early stage. Don't wait until the situation gets worse but be professional and keep your emotions at bay. 

In trying to resolve a blatant breach of agreement, keep all communications in writing or take screenshots. It’s much easier to stick to your guns when you have something to back up your claim in black and white. 

Any sensible client would not take it against you if you stand on your ground. Train yourself to move past the employee mentality. You're now an independent contractor so you don’t need to give in to undue pressure. Protect your business, build your reputation, and forge healthy business relationships. 

If you want to go further in building your own freelancing business, signing-up for our courses can fast-track your progress. You’ll be guided every step of the way, until you become the kind of freelancer that most clients would want to work with. Check out our best value courses here

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by Jason Dulay 
Jason is the founder and CEO of Work from Home Roadmap and VA Bootcamp. Aside from teaching Filipinos how to succeed working from home, he likes traveling, playing board games, and drinking coffee.

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