Benefits of a Formal Contract
Benefits of a Formal Contract
Benefits of a Formal Contract
In the web design and/or web development world, many often question whether or not a contract is really necessary between the client and the designer/developer. When being hired for a small project or a large project, by a family member, friend or what have you, developing a contract is essential to standard operating procedures.
No matter what kind of freelance project, design or development, all should include and start with a contract. Contracts serve the purpose of protection, as well as a great guideline for your clients to follow. This contract provides your client with a schedule, what to expect and exactly when and what work you will be giving them.
Be wary of pulling just any old contract off the internet, especially the free ones. While it's good to download a template to structure your contract, they aren't specific enough for you to leave it at that. When building your contract, keep these tips in mind:
-Specifications - Your contract must embody everything from the pricing, turnaround time and how you are asking to be paid. If you bill people per project, that should be included, however, if you are asking to be paid by the hour, outlining these preferences is necessary. If you're going the hourly rate way, be sure to state your wage, per hour, and the length the project will take to complete. Also important to include, is what you will expect if the project takes longer to complete than the estimated timeframe. You definitely don't want to not get paid for those extra hours.
Stipulations - In order to protect yourself, time and money investments, it may be smart to include stipulations that cover and ensure you will still get paid in the event that the project is canceled. Although, this doesn't happen a lot, it can still happen. Furthermore, if these statements are not brought up, especially in the form of a contract, the client can refuse to pay you if they no longer are in need of your service. It's not your fault if their project falls through, you must protect yourself. Another smart thing to do is ask for a percentage of the payment upfront.
Payment Due Dates: Equally as important as the rest of these tips, is to specify the date of when your client needs to have their invoice paid. When you add a date for your billing, the client will have to pay by this date, if you don't include the date, they may push the payment off for a long period of time or forever. If a client does not pay by the specified time, first send them a friendly email saying that it is due with a copy of the contract they signed in the beginning. Even though the contract may not change the mind of your client, they are very effective when and if you need to hire a lawyer.
It's very important to add all the specifics to your contracts, in order to protect yourself, as well as the client. When you've developed your contract, you and your client must both sign and date. Then keep it on file for future reference. Sometimes, if you don't present a contract, your client may not take you as serious as you want your business to be. So to keep your business blooming, and your great reputation with potential clients, form contracts and keep your bases covered. Contracts leave no room for missed communication!
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