Introduction

So, you’ve landed a new freelance gig, and you’re ready to get started. But before you dive headfirst into the work, there’s one little detail to sort out: the contract. We know, contracts can seem about as exciting as reading the terms and conditions on your favorite app, but trust us—this is one document you don’t want to skip over.

A solid freelance contract is like a superhero’s shield: it protects you from all sorts of business-related dangers, from unpaid invoices to “endless revision” nightmares. Let’s break down what you should include in your freelance contract to make sure you stay safe, sound, and (most importantly) paid.

Read: 7 common contract mistakes that could cost your business thousands

The basics: who, what, when and where

Start with the basics. Every contract needs to clearly state who the parties are, what the scope of work is, and when the work will be done.

• Parties involved: This isn’t a guessing game. Include the full legal names and addresses of both you (the freelancer) and your client. Make sure to spell them correctly—you don’t want to be accidentally contracting with a random guy named “Jon” instead of “John Enterprises Ltd.”

• Scope of work: This is where you lay out what you’re actually doing. Be specific! Describe the project details, the deliverables, and any milestones. For example, “Design a 5-page website, including homepage, about page, services page, blog page, and contact page, to be delivered by [date].” This way, everyone knows what they’re getting into, and there’s less room for misunderstandings.

• Timeline and deadlines: Deadlines are your friend. Specify when the work will start and when it’s expected to be completed. Break down the timeline with key milestones, so both parties are aligned on the project’s progress.

Read: When should I hire a lawyer for my contract?

Payment terms: Show me the money

• Payment amount: State the total amount you’ll be paid for the project. Are you charging a flat fee or working on an hourly rate? Be crystal clear. If it’s hourly, include your rate and an estimate of the total hours needed.

• Payment schedule: When do you expect to be paid? You could specify payments at project milestones (e.g., 50% upfront, 30% upon delivery of a draft, 20% on final approval). Or, you might prefer monthly payments for ongoing work. Just make sure you’re not left waiting around like a pizza delivery guy who never gets tipped.

• Late fees: Don’t forget to include a late fee clause. This is your insurance policy against tardy payers. For example, “Payments made more than 15 days past due will incur a late fee of 1.5% per month.” It’s amazing how quickly clients find their checkbooks when there’s money on the line!

• Expenses and reimbursements: Specify who will cover any additional expenses, like travel, software, or equipment. Will you invoice separately for these, or are they included in your fee? Get it in writing to avoid the dreaded “but I thought you were covering that” conversation.

Revisions and changes: How much is too much

We’ve all been there: you send over the first draft, and suddenly your inbox is filled with “Could we just tweak…” emails. To avoid endless revisions that eat into your time and sanity, include a revisions clause.

• Number of revisions: Set a limit on the number of revisions included in the contract. For example, “Two rounds of revisions are included; additional revisions will be billed at $X per hour.” This keeps clients from turning a simple project into a never-ending saga.

• Scope creep protection: Define what constitutes a revision versus a new scope of work. For instance, changing the text color is a revision; asking for a full redesign is a new project. Clarify what will result in additional charges, so your clients know exactly where the line is.

Intellectual property: Who owns what?

Next up, the all-important question: Who owns the work? This can be a sticky point, so it’s best to clarify upfront.

• Transfer of rights: Specify when and how the ownership of your work transfers to the client. For example, “All rights to the deliverables transfer to the client upon full payment.” Until they pay, you keep all the rights. That way, you’re not handing over your masterpiece for free.

• Licensing: If you’re retaining ownership and just granting the client a license to use the work, be explicit about what’s allowed. Can they modify it? Resell it? Only use it for a specific period? Clear licensing terms help prevent future disputes.

• Portfolio use: Make sure you have the right to include the work in your portfolio or website. After all, how else will you show off your mad skills to future clients?

Read: The pros and cons of using standard contract templates

Confidentiality: Keep it secret, keep it safe

If your client is sharing sensitive information with you, include a confidentiality clause. This shows you’re trustworthy and protects their secrets (and yours).

• Confidential information: Define what counts as confidential—proprietary business info, trade secrets, client data, etc. Make it clear that both parties agree not to share, use, or disclose any confidential information without permission.

• Non-disclosure period: Specify how long the confidentiality agreement lasts. Is it during the contract term and for a year afterward? Five years? Forever? Pick a reasonable duration based on the nature of the work.

Termination Clause: The exit strategy

No one likes to think about things going south, but it’s better to be prepared. Include a termination clause that outlines how either party can end the contract.

• Grounds for termination: Define the acceptable reasons for terminating the contract, such as non-payment, breach of terms, or failure to deliver.

• Notice period: Specify how much notice must be given before termination. This could be 14 days, 30 days, or another reasonable period, depending on the project length.

• Payment for work completed: If the contract is terminated early, what happens to the work you’ve already done? Make it clear that you’ll be paid for any completed work, even if the project doesn’t reach the finish line.

Dispute resolution: Avoiding courtroom drama

To keep things smooth, add a dispute resolution clause that outlines how any conflicts will be managed. After all, no one wants their business deal to turn into a courtroom drama.

• Mediation or arbitration: Consider requiring mediation or arbitration before going to court. This can save both sides time, money, and a lot of stress.

• Choice of law and forum: Specify which state’s or country’s laws apply to the contract and where any disputes will be handled. This is crucial when dealing with clients in different states or countries.

Read: Does a contract have to be in writing?

Conclusion

A solid contract isn't just paperwork—it's your safety net in the unpredictable world of freelancing. By including key elements like clear terms, payment details, revision limits, ownership rights, confidentiality clauses, termination conditions, and a plan for resolving disputes, you protect yourself, set expectations, and make sure both you and your client are aligned.

So, before you jump into your next project, double-check that your contract covers all the bases. A bit of effort now can save you from big headaches later. And who wouldn’t want a smoother freelancing life?

How Cobrief can help with contract review

Reading your business contracts can feel overwhelming as an owner-manager of a small to medium-sized business. That’s where Cobrief comes in. Cobrief helps business owners and operators review their business-to-business contracts for legal risks.

Upload your contract to Cobrief's AI contract review software, click review and you’ll get a list of all the risks, in plain English. This helps you decide whether to sign, negotiate or reject the terms of your contract, or hire a lawyer. Think of it as a heat map for your contracts.

Get started here.