I recently attended a Freelancers Union workshop on contracts, hoping to get a couple of questions around the language of non-compete clauses and kill fees answered. I was AMAZED at how many people there said they sometimes or always worked without a written contract in place.
Some people seemed to consider asking for a contract to be a sign of distrust in their client or believed they would lose the client if they didn’t start working immediately (pre-contract) or if they pushed for a written agreement. One person actually said that his client told him they didn’t want a contract because they “had prior bad experiences with contracts.” (Side note to this man: Don’t work with this client – this is not a good sign. It means they had a disagreement about what the contract entailed, didn’t live up to their part of the contract, didn’t follow proper tax/accounting procedures, or are just shady in general.)
Clients can be difficult to find, particularly when you’re starting out, and cash flow is uncertain when you’re self-employed. Most freelancers aren’t exactly flush with extra income and a delay or cancellation can be a major financial issue. So, I certainly understand the impulse to want to lock down the client and get things rolling, especially if you have already expended a lot of time and resources into getting your foot in the door. But please, don’t work without a contract. Having a contract doesn’t necessarily mean that you won’t have a problem client who backs out of the agreement, refuses to pay, etc. but it does mean:
- You are less likely to end up needing to take legal action, because your client knows you have a written contract
- If you do need to take legal action, you are more likely to prevail with a written contract – rather than attempting to prove the existence of an oral contract or cobble together proof of agreement through an email chain
- You protect both yourself and your client by clearly delineating the responsibilities, deliverables, pricing, payment schedule, and timing that you both have agreed on and allowing both parties a chance to review
- You are following best practices for a business
- You appear more professional and thus, more like someone your client or potential clients should take seriously
- You can refer back to the contract if questions arise, especially if there is a change in your point of contact – another individual may not know about or feel compelled to honor a handshake deal you made with a different employee
- You can more easily track your schedule and cash flow
- You can protect your intellectual property
Contracts don’t have to be elaborate. I frequently use my client’s standard contracts (although always read these thoroughly and push back on any language or requirements you aren’t comfortable with – they are rarely set in stone) and I also have a basic contract template I adapt for use with new clients. If in doubt, many of your city and/or county small business assistance centers can help you find free or low-cost legal advice to get you started. You are putting yourself and your business at risk if you work without a written contract. Just don’t do it.
