Landed a big client? Great! But before you start trading, you must make sure you have an agreed contract in place whilst working with them. In this guest blog we’ll be exploring some of the most common points of contention which you need to address from the outset.

Getting a freelancer or consultancy agreement signed before any services are provided should be a priority for any freelancer, consultant or client. A contract protects both parties by setting out their obligations clearly, and reducing the risks of any misunderstandings or dispute. Without it, you are relying on a verbal agreement, which is unlikely to be the same agreement in the minds of both parties, or cover all of the issues.

Any contract should be written in plain English to ensure that everyone understands and agrees with it. It should contain all the terms that are relevant to the parties and the services being provided, while allowing for flexibility and a process to make changes if necessary.

1. Services: Setting out the services to be provided and the standards required avoids mistakes by either party about what is to be delivered. It reduces the risk of creep, where the list of services increases without a corresponding change to the price or timescales. Alternatively as the client, it ensures you get all the services you are expecting. Outline how things will be put right if the services are not up to the standard expected.

2. Responsibilities: Consider who is responsible for each part of the project and what each party needs to provide. For the client, responsibilities may be to provide access to certain property and information, respond quickly to requests from the consultant and appoint someone to take charge of the project and liaise with the consultant. Setting out each parties’ responsibilities in writing ties them to those obligations.

3. Time frame: Any milestones or time frame for the services should be made clear in the contract, with a process for dealing with any slippage or adding extra services during the period of the contract.

4. Payment: Make clear what payments are due and when, the process for making the payments and what happens if they are not paid on time. If the payments are dependent on certain services being provided or time frames being achieved, make this clear.

5. Confidentiality and Intellectual Property: Define both parties’ obligations in relation to confidential information and what steps need to be taken to protect that information. Make clear who will own any intellectual property relating to the services and when will this transfer. Consider whether you as the consultant want to retain any rights to use information about the services in your future marketing. Most intellectual property rights will remain with the consultant unless specifically assigned to the client.

6. The end of the contract: How can both parties end the contract? Is the contract for the life of the project or will it continue until either party gives notice to the other party? Make sure you can end the agreement if the other party does not follow the contract or correct a mistake, or their business gets into financial difficulty.

7. What happens after the contract ends: If there are any obligations after the contract ends, for example to make certain payments, and return any materials or information, include these in the contract. Don’t leave it to chance that this will happen.