One of the greatest perks of freelancing is having more control over your professional life.
You have the freedom to choose which jobs you accept, how regularly you work, where you spend your days, and how you spend your time. Be creative or work with big data. Try a popular NFT jobs right now or become a programmer or financier. Crypto Freelance platform LaborX can help you with it. However, there is a potential downside to freelancing jobs, which is that the autonomy they provide also comes with an increased level of responsibility.
One of the most important responsibilities that come with working as an independent contractor is coming up with freelance contracts for the services that they offer.
A lot of freelancers, if interviewed, will be able to narrate at least one experience in which they weren’t paid for their services and certainly wish they had a written freelance contract to protect them. It’s possible that a customer didn’t pay because they ran out of money before the job was finished, or that extra hours were latched on to a project, which resulted in unpaid labor.
Luckily, the composition of a written freelance contract is neither difficult nor complicated. When you give some thought to what you do and how you do it, it should not be difficult to use a freelance agreement for each and every project.
Now, it will be crucial to start up with what a Freelance Contract actually entails.
WHAT IS A FREELANCE CONTRACT?
A freelance contract is an agreement between a freelancer and a client. It provides an explanation or clarity on the numerous terms and conditions that apply to the work that will be done by the freelancer. This agreement is necessary because it contributes to the development of a healthy and equitable working relationship between the client and the freelancer.
It lays out the reasonable goals that both parties hope to achieve regarding a particular project that will take place over a predetermined amount of time. This type of document is legally binding and makes sure that everyone working on a specific task is in compliance with the terms of service guidelines. In other words, it ensures that everyone is on the same page.
This freelance contract provides you with a written agreement that you can rely on if you choose legal action for default of the terms. If the client does not pay you despite you fulfilling your end of the bargain and delivering all of the work on time as promised, then legal action might not be such a bad idea with a freelance contract.
On the flip side, your customer also has a written agreement that they can refer to in the event that you do not live up to your end of the bargain.
ARE FREELANCE CONTRACTS IMPORTANT?
Freelance contracts are absolutely important and if you are having doubts on its necessity, here’s a salient reason to sway your mind.
Not only can disagreements be resolved through the use of a freelance contract, but they equally help outline the parameters of the agreement. A verbal agreement can be interpreted in a number of ways but a written contract can’t possibly be misunderstood in any way. A contract can serve to protect your legal rights if you are a freelance worker.
Since the HR departments (where the clients are big corporations) do not handle the concerns of freelancers, having a written agreement can help ensure that you are paid on time and that you will not be asked to perform work that is beyond the scope of the project.
WHAT SHOULD A FREELANCE CONTRACT CONTAIN?
To ensure that your freelance contract is as valuable as possible, there are a few provisions that should be included in it. Even if you already have a contract in place, it is still a good idea to include certain key clauses to make sure that you aren’t missing any important provisions in your freelance contract.
Nevertheless, it does not matter how you go about drafting your freelance contract. Whether it is one written by you or one that is provided by the client, you need to make sure that the agreement has the following vital clauses at the barest minimum.
A decent freelance contract will begin by outlining the fundamental information about both parties. The names of the parties, the location of their offices, and the primary goal of the contract are all included here. As a result, both parties are held accountable.
This section will also describe the freelancer’s employment position, identifying them as an independent contractor instead of an employee or a partner.
- PAYMENT DETAILS
You need to make it perfectly obvious what kind of pricing terms both parties have settled on (hourly, per project, retainer, etc.). This helps define the basic guidelines from the very beginning and avoids payment issues in the future. If you omit this clause, there is a possibility that a customer will misunderstand your prices and have second thoughts about paying you at the conclusion of the job.
This part ought to contain information regarding the payment terms, including the manner in which the freelancer will bill the project, the manner in which invoices will be processed, and the number of days the customer will take to process the invoice. Additionally, an arrangement must be made for the mode of payment.
Rather than waiting to get paid all at once for large tasks, a freelancer may find it more convenient to divide the payment schedule for those projects into a number of smaller milestone payments. This should be stated in the contract too.
- THE SCOPE OF THE PROJECT
This clause ought to delve even more into the specifics of the task being done. For instance, it ought to lay down what the freelancer’s obligations would be, the volume of final deliverables expected, how frequently they will be asked to submit work, and so on.
In a similar vein, it should also indicate what is to be expected from the client, including the types of briefs, raw data, and feedback that will be delivered to the freelancer in order to help them perform the job effectively.
For freelancers and clients alike, meeting a deadline is crucial, and setting a completion date and other project milestones in advance can help avoid misunderstandings and dissatisfaction. Contracts for freelance work should be as specific as possible concerning the turnaround times, deadlines, and penalties for late submission.
Not only is it necessary to specify precise deadline dates, but also for when your client will respond to you with comments and revisions to your work.
- INTELLECTUAL RIGHTS
In an ideal world, every freelancing project would lead to a long-term, mutually beneficial professional partnership. If you have a solid freelancing contract in place that covers your best interests, you can avoid a lot of the hassles in the beginning of your work engagements and forge ahead with building a solid freelance career.