12 Points to Include in Your Design Contract
When I started my own design business, one of the first things I put in place was a well-written contract. Before I spoke to an attorney about drafting an official document for me, I made sure I had my design process established.
I also did a lot of research as to what other design firms and freelancers were including in their agreements. With something as subjective as design, there are lots of gray areas that need to be clarified as much as possible on paper.
If you’re in the process of drafting a client contract, or if you are considering revising one that already exists, I would recommend including the following list of items:
1. Estimate Terms
When starting a new project with a current or prospective client, I’m always sure to estimate the project time first. In my experience, giving yourself a bit of extra time on the estimate is a good thing. It will cover you in the event any unexpected snags come up.
My clients are only billed for the time I spend on their projects, so if I don’t use up all the time allotted on my estimate, I look like a hero who came in under budget. On the flip side, if I find the project needs more time for completion (for whatever reason), I’m sure to notify my clients before continuing work and racking up additional hours.
There are some items that are hard to estimate for such as any special fonts or stock images the client may want to purchase later on. In such cases, I’ve stated on my estimate that these costs will be added to the client’s remaining balance. Of course, I’m sure to get the client’s written approval first, before I incorporate these elements into the design.
Other items I try to include in the project bid are rush-order charges, any special project fees, and any other professional costs that may be incurred along with an estimate expiration date. An exact description of the service/product you are providing to your client in the estimate is helpful as well, along with an invoicing schedule. It is my advice to have your client sign your estimate individually before starting work. This not only ensures everyone is on the same page at the beginning, but it also helps in the event a legal issue should arise.
It is written in my contract that I am allowed, as the designer, to show client work in my online portfolio and in printed form.
2. Changes
How many changes or project revisions are you willing to make? After deciding on your design process, you should easily be able to answer this question. I provide my client with three rounds of changes before additional charges will apply.
3. Turn-Around Times
It doesn’t hurt to mention how quickly your client should expect to see completed work. This often comforts the client as they know they aren’t being ignored while waiting for a proof. This also requires that you, as the designer, stay on track and provide your clients with project proofs and deliverables in a timely fashion.
4. Client Approval
How should the approval process work? Do you send hard-copies of the design, ask the client to sign-off, and then return to you? Is email approval acceptable? Will you send a print-design to the printer if the client is in a rush, without written consent? All good items to discuss in your contract.
5. Promotions
It is written in my contract that I am allowed, as the designer, to show client work in my online portfolio and in printed form. I also ask my clients to allow me permission to enter any pieces I see fit into design competitions and promotions. Some clients are uncomfortable with this and I deal with them on a case-by-case basis. However, is there a general rule you’d like your clients to agree to?
6. Confidential Information
During the course of working with your client, chances are you will be exposed (and they, likewise) to private information. By signing my contract, clients are agreeing that they will not make public any confidential information pertaining to my business. They also acknowledge that I will keep their business information confidential as well.
7. Relationship to the Client
Some designers feel it is important to clarify that by working with the client, they are not considered an employee of the client. Work will be done as a freelance or business service, operate on the designer’s schedule and take place at the designer’s facilities. Where and when you complete your client work is up to you, and should be included in your contract. Some clients ask their freelancers to work strictly on-site. Is this agreeable to you?
There are “acts of God” that can prevent us, as professionals, from completing a job. If a fire takes down your home office or if a flood destroys your small business location, chances are you won’t be able to meet your clients’ deadlines.
8. Warranties
Say you created a website for a client and the project has been completed for a month or so. They have even paid their final balance. Out of the blue, you receive a phone call from the client saying they discovered a typo on the site. Are you willing to fix this at no charge or is there a fee? For how long after the work has been published or completed are you willing to repair any broken links, re-submit any artwork to the printer, or fix grammatical errors?
9. Contract Termination
For whatever reason, you or your client no longer want to work with one another. Can you terminate your agreement and how do you go about doing so? Does any work have to be completed or can you quit the job cold-turkey? What about client property? If they supplied you with discs and images for the job, how soon do those need to be returned? All good items to think about when creating a contract.
10. Force Majeure
There are “acts of God” that can prevent us, as professionals, from completing a job. If a fire takes down your home office or if a flood destroys your small business location, chances are you won’t be able to meet your clients’ deadlines.
Just as a precaution, I would suggest including this in your contract. Worse case scenario, you have no home nor computer, the last you thing you would want is an angry client coming after you for not completing a job in time.
11. Other Legal Considerations
Other items to think about may include how you and a client may handle a dispute should it arise, third-party involvement and which party would be responsible for any legal costs, should they be incurred.
12. Sign Please!
After all has been written and your attorney has approved, don’t forget the signature. Simply submitting the document to your client doesn’t count as an agreement. To make matters convenient, allow the client to return your contract signed via snail mail, fax or email.
Again, let me stress that I’m not a lawyer and this does not count as legal advice. These are simply points for you to consider including in your contract, which should be drafted by a licensed attorney.
Over the client relationships I’ve had, there have been times where simple questions pop up regarding my process or payment plans. Having a contract on hand, just to answer simple questions, is a great resource. It can offer you a little piece of mind and protection as well.
Photo by h9k.
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Awesome writeup. I need to revisit my contract and this is some great advice. Thanks!
I guess all the above point covered most of the issues which i recently had with my clients. Nice writing Angela… Thanks for sharing !!
You make some good points. Del.icio.used
Very insightful and useful article! As a freelancer coming out of school they NEVER teach you this sort of stuff.
One for the bookmarks this!
Thanks!
I think I’d like to add a clause about how I expect the client to respond with items. I know they are hiring me, but I’m running a business too. Clients need to be held responsible by the contract as well, as this tends to be the issue I run into the most often.
These are some good suggestions
Wish I had thought about it a few projects past^^() I’ll try using this as part of my guide when I work on freelance web dev projects.
Wow, thanks for the great tips! I am going to go back and make sure to add a lot of this stuff to my contract. It really helps to have clearly defined terms and now I won’t feel like I have to make changes to my contract after every project snag, your tips above just about cover it.
I’ve used this one in the past as a starter:
http://www.aiga.org/content.cfm/standard-agreement
I AIGA boilerplate contract is a great start…I find that I have to customize it for just about every job, however. I’ve adjusted some of the standard language, too, in order to keep the legality of it, but make it sound friendlier.
This article’s a godsend. I’ve been looking around the net for almost a week for things to include in my contracts and this is the one I’m looking for. Thanks!
I would also suggest adding something about a project finishing in a timely manner. I have a project I am trying to launch and have been waiting 4 months for final payment. I used to have a charge in my contract for any project that had no activity beyond a 30 day period would be charged x% in a re-start fee. I really wish I hadn’t removed it. Great post. I will definitely be going over my contract to make sure I have taken into account your suggestions. THANKS!!
Very nice list. one thing I often omit to mention is the turnaround time. However, I would agree with John on adding some terms as far as payments. I typically charge 50% up front, 25% after the first approval and 25% after completion of the project in exchange for the final files. Also, I make to to mention that deposits are non-refundable.
Cheers!
Great Advice!
However, I have a Kill Fee in my contracts so if the client or I end the project before it is finished, I’m still guaranteed to received the remaining payment for the work I’ve already completed. This has come in handy with a past client that refused to pay an invoice and requested a new contract all while I was already working on other projects for them. To make a really long story short, I’m glad I kept the Kill Fee in my contract because seven months later and the day before our case was to be heard at Small Claims Court, I received all the entire payment I was suing them for.
Great tips, it’s always hard putting together a really well written contract that coves everything.
A great place to find a very good (tested in court, I believe) contract is in Jeff Fisher’s book ‘The Savvy Designer’s Guide to Success.” I’ve used a very similar version of it for years.
A couple things in my Agreement:
• Any incidental or additional costs or services rendered throughout the project may be billed
immediately. (This is for stuff like stock photography that needs to be purchased while you’re working on the project.)
• Not a work-for hire (Google it)
@John- I have a client who is dragging their feet and I plan on billing them for work completed to date. If they never finish it’s no burden, I’ll be paid for any time already put in.
great article… i have used most of these pointers into work but i might give more detail into it.
Thanks!
Thanks. Interesting article, I will try to apply to the projects
Great Advice!
Excellent entry for those that have never used a contract before for larger jobs. I’m wondering if people out there are using contracts for every job no matter how small they are or just for the “larger” jobs?
Do you have any sample contracts, I would love to see it!
Once again you deliver! I have a contract that is good but this gave me some ideas so I think I will Revisit mine and do some updates. Contracts are good for you and the client!
Great article and very good points to consider and include in any contract. John Ek makes a valid point about including a re-start fee for delays caused by clients.
On that note, are there any references for how much a re-start fee should be?
Thanks for the detailed info. I’ve been thinking of making a contract, so this article comes in handy. I’ll have to bookmark it, to go deeper into it on a later opportunity.
Good points. However, you forgot one of the biggest points of contention. The copyright! Who retains it, when is it turned over, etc. VERY important in a contract of this sort.
Great post. We haven’t even considered number 10. Force Majeure before. That is an important part, specially when there are only two of us in the office right now.
Thank you.
Great post AND great comments as well! I love this site for that combination.
@Jay Kerr – I have the same question! I’m finding myself in an awkward position because right now I have many small projects (and freelancing formally is new to me), so I find that by the time I figure out the contract thing, the project is almost done and I haven’t mailed it out. I also find that the client seems either unconcerned or uninterested in using a contract for such an “informal” project. Do you all use contracts for every project, no matter how small? Or at what size does it become important?
Also wondering how to broach the topic, and how to encourage use of my contract, or in some cases are there two contracts involved – client’s and contractor’s?
One method I have found useful is using the Freshbooks Estimate feature which allows you to enter “terms” and – I’m not sure if it’s legally binding but seems like it could work well as a mini-contract, because I believe the client has to “accept” the estimate.
You should try Docracy.com. You upload your contract online and everyone can e-sign it. No need to mail.
With clients that I work with on a regular basis – I don’t worry about drawing up a contract for every little project. However, I think it’s important to have a contract before beginning any work with new clients. It just starts things off on the right track and makes sure there is a clear understanding.
great article! cheers
Good points. One of the most important aspects should be your limitation of liability. Make sure it’s well written and clear in case things go south.
Very Important List
Del.icio.us it.
That will help me alot working as a Freelancer. Thanks
Thanks a lot! Great information. I still need to write a contract, so I will be using this as a guideline.
Great-great-great piece of information! Thanks for putting this together!
Very well written article. Valid points.. I will be thinking more about 7 & 10.
Cheers*
Lovely guidelines, definitely going to use these when going to be writing my contract. Thank you.
Thanks for sharing.
There isn’t much information freely available on the legal aspects of web design, and for me, it is the single most important consideration before starting to work for a client.
nice article. thank you.
Thanks for a superb and valuable article Angela.
I will take all of these points into consideration for all my contracts henceforth!
~Mikeumus
Thanks for the article. Really great advise and now I have to update mine a little.
Thanks for the blog post. It has been broken down clearly into its different sections and explained well. This blog post it really worth having a look at if you are wanting to write up a design contract.
Thanks again
Great article! You did a very nice job of keeping the important points while keeping it concise.
I am going to be revising my contract to make sure it hits these points and toss the junk that is irrelevant.
Really good stuff for a new designer.
But I’m curious to ask:
What’s the purpose of having an estimate expiration date? When it expires do you meet with your client for another estimate? And how do you know to put a 30-day expiration day as apposed to a 90-day expiration date?
Great article as usual…Is there a place where I can download a standard contract?
Very sensible suggestions from an experienced professional. Thanks!
These are great tips that should be used by all creatives, including copywriters.
Great list and it reminds me that there’s a few things I need to tweak in my standard contract:
1. Expiry date – A contract should only be valid for a certain amount of days before it expires. This lets you say no if you’ve taken on new work, charge a different rate if necessary, or amend the completion date if you’ve nominated one.
2. Completion dates – I think best practice would be to say the project will take so many weeks rather than nominate a date in a calendar. I’ve found that by using a date, clients expect that date to be met even if they take up days at a time by not responding or supplying required information.
3 – Deemed acceptance – To push clients along I’ve had to insert a deemed acceptance clause into my contract. I put in there a time limit on when I expect a response in order to meet the project deadline, and when I’m awaiting approval if they don’t respond in so many days the clause says I can deem the non-response as acceptance and the project can proceed as such.
In my experience the initial contract document isn’t enough by itself either. The client should be signing off on designs at certain milestones so that you can continue working with confidence and not lose money on making subsequent changes, or fixing typos.
This is one of the better articles on Freelance Switch. Great stuff. It’s always good to see what others are including in their contracts.
Great article – however I thought it may be helpful to add some important information that relates to number 7, ‘Relationship To the Client’. The article states that:
“Some designers feel it is important to clarify that by working with the client, they are not considered an employee of the client.”
The reason ALL designers should feel this is an important point to clarify is because it has a huge effect on who has copyright ownership of the design work. As a freelancer or independent contractor, copyright of any design work automatically remains with the designer from the moment the work is created. The designer generally licenses use of their work to the client. (How your client can use the work you create for them should also be outlined in your contract.)
Any design work created as an employee is owned by the employer. Thus by agreeing to work as an employee, your employer often has copyright of all of the work you create for them. This isn’t to say designers should never work as employees. It is just good to understand the distinction between the two and how it directly affects copyright ownership of your work.
Perfect article. I am going to modify my contract again, lots of misses are there so I am gonna include them. Thanks.