Writing Consultant and Freelance Contracts for Your Clients

Once you strike out on your own, the question of contracts eventually will surface. Do you? Or don’t you?

Is a contract necessary between you and your client? The answer is no, it isn’t. Many consultants and freelancers work for years without contracts of any type. They rely on the verbal agreement between themselves and their clients. However, such agreements tend to cover only the basic elements of the business relationship, leaving many contingencies unaddressed and omitting important protections.

It is advisable to use some form of a contract for every project you do. A contract clarifies the project, what you have agreed to do and when you will deliver, and binds the client to pay for your services. Contracts avoid misunderstandings that could create problems later in the work relationship.

Generally, when we think of contracts, we envision a long document of legalese that has been drawn up by an attorney. If you prefer this type of contract, there are many available on the Internet.

You do not need, however, something this formal to protect yourself and your business. Here are some other forms of contracts that are used:

• A formal letter
  
  


• An proposal or quote
  
  


• A preprinted form that you fill in for each project/client
  
  


• A purchase order from the client
  
  

I generally create a detailed agreement for the first project I do for a client. Any additional projects thereafter, I cover with a quote that is just as detailed as the agreement. In each instance, the client must accept and sign the document before work begins.

To make any contract legal, the client must sign it or accept it in such a manner that can be proven and enforced in a court of law. Even if you would never pursue it that far, a carefully written and signed contract provides a written record that details the business relationship between all parties. It avoids misunderstandings at the beginning. Writing down the details will remind you of things you have forgotten to discuss, and the details may prompt questions from the client, as well as other elements that should be covered. A contract is your best source of reference later on as to what was agreed.