Freelancers: Don't forget the service agreement contract!

Freelance Switch has a great article on protecting yourself on projects here. They point out 8 key areas you should be sure to cover in your service agreement before starting a project, particularly with a new client.

*Billing structure: what is your rate? how do you bill (by hour or project?)

*Late payment: Determine/state your grace period (usually 30 days) and late fees

*Interim charge caps: Put a cap on how much debt a client can carry before you stop working (for example, with a $500 cap, the client has to pay something to bring it below $500 before you continue with the project). Especially important for large projects.

*Scheduling: Are you on call 24/7 or Monday-Friday 8am-5pm? Can clients call you after hours in an emergency? Do you work weekends or holidays?

*Spec work: Working on speculation is essentially doing free work so that a client can judge your services and determine if they want to continue. Gary Horsman of Freelance Switch recommends NOT taking spec work and spelling that out in the service agreement.

*Termination of services by client: If your work is refused or your services rejected after you've already done part of the project work, state in your service agreement that work not paid for cannot be used in whole or part.

*Ownership rights: Establish who owns the work: you or the client. If you want to retain the work for use in a portfolio, state that in the agreement.

*Unforeseen or sudden termination of a project: If you are unable to continue due to illness, accident or for another reason, clients deserve protection. The best thing to do is have an agreement with a backup (or two).

By being clear and upfront, you establish yourself as a professional and prevent unnecessary miscommunication that could hamper your reputation.

N.B. All costings are in US$.

Image source FreelanceSwitch

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