How to develop a standard client contract

Your first step is to create a standard client contract that clearly outlines the work you'll do, the payment you'll receive, and the timeline for completion. A simple, clear contract is one of the most powerful tools for protecting your new business. It prevents misunderstandings and ensures you get paid for your hard work. Do not start any project without a signed agreement in place.

Why a contract is non-negotiable

It might feel a bit formal when you're just starting out, but a contract is your best friend. It:

• Prevents 'scope creep': It defines exactly what you will and won't do, stopping clients from adding extra work for free.
• Guarantees payment: It sets out when and how you get paid, including what happens if a payment is late.
• Adds professionalism: It shows clients you are a serious and organised business, building trust from day one.
• Provides legal protection: If a disagreement does occur, a signed contract is the document you'll rely on to resolve it.

What to include in your contract

A good contract doesn't need to be full of complicated legal jargon. It just needs to be clear. Make sure yours covers these key areas:

1. The Basics: Include your full business name and address, and the client's full name and address. If you're a limited company, include your company registration number.
2. The Scope of Work: Be incredibly specific. List the exact services you will provide and the final deliverables. It's just as important to state what is not included. For example, if you're a web designer, you might state that "three rounds of revisions are included, with additional revisions billed at an hourly rate."
3. Timelines and Milestones: State the project start date, key deadlines for milestones, and the final completion date. Include a clause about what happens if delays are caused by the client (e.g., slow feedback).
4. Payment Schedule and Terms: Clearly state the total project cost. Break down how it will be paid – for example, a 50% deposit upfront and 50% on completion. Specify your payment terms (e.g., "payment due within 14 days of invoice") and any fees for late payments.
5. Change of Scope Process: How will you handle requests for extra work? Define a simple process, such as requiring a written "change request" that outlines the new work and any additional cost, which must be agreed upon before the work starts.
6. Cancellation Clause: What happens if the client cancels the project halfway through? Your contract should state how much they are liable to pay for the work already completed and any "kill fee" to compensate for your lost time.
7. Ownership (Intellectual Property): This is crucial for creative work. Typically, the client owns the final, finished product once they have paid in full, but you might retain the rights to the working files or the right to showcase the work in your portfolio.
8. Limitation of Liability: This clause aims to limit your financial liability if something goes wrong. It's a complex area and one where legal advice is highly recommended.

How to get your contract created

Important: While templates are a good starting point, it is always best to have a solicitor draft or at least review your contract to ensure it is legally sound and suitable for your specific business needs. Think of it as an investment, not a cost.

You have two main options:

• Use a Template: You can find customisable contract templates from online legal services. These are a cost-effective way to get started, but you must read and adapt them carefully to fit your business.
• Hire a Solicitor: The safest option is to pay a solicitor to draft a template for you. You can then reuse this contract for all your clients, simply changing the specific details for each project. This provides the best protection.

Best Practices

• Keep it simple: Use plain English wherever possible. The goal is clarity, not confusion.
• Sign first, work later: Never, ever start work until the contract is signed by both you and the client.
• Use digital signatures: Services like Adobe Sign or DocuSign make it quick and easy for clients to sign electronically.
• File it away: Keep a signed copy of every contract for your records.