The Freelancer's Contract Guide

A handshake is not a contract. The moment a freelance project goes sideways — a client disputes an invoice, asks for endless extra work, or claims they own everything you made — a written service agreement is what protects you. Here is what a solid one covers, and how to think about each part.

Start with a specific scope

Vague scope is where most freelance disputes begin. "Build a website" invites endless additions; "design and build a five-page marketing site with responsive layouts and a contact form" sets a clear line. Spell out the deliverables, and note that anything beyond them is extra work at an agreed rate.

Choose how you charge

There are three common structures, and the right one depends on the work:

• Fixed fee — one agreed price for a well-defined project. Best when the scope is clear.
• Hourly — billed for time worked. Best for open-ended or evolving work.
• Retainer — a recurring monthly fee for ongoing availability. Best for long-term relationships.

Whichever you pick, state the amount, the currency, and when invoices are due.

Get paid on time

Cash flow is the freelancer's perennial problem. Three clauses help more than anything else:

1. A deposit before work begins — often a percentage of a fixed fee. It filters out unserious clients and de-risks the project.
2. Clear invoice terms — for example, payment due within 14 days (Net 14).
3. A late-payment clause — interest on overdue amounts gives clients a reason to pay promptly.

Decide who owns the work

This is the clause freelancers most often get wrong. Two common approaches: the client owns the deliverables once they've paid in full, or you keep ownership and grant the client a license to use the work. Both are legitimate — just be explicit, and in either case make sure you retain your pre-existing tools, templates, and know-how.

Protect yourself

Round it out with confidentiality (especially if you'll see the client's private information — sometimes paired with an NDA), a limitation of liability so a single project can't expose you to outsized claims, and clear termination terms that still pay you for work done up to the cancellation date.