How to Write Freelance Contracts That Protect You (Templates + Real Clauses)
I lost $400 on a $3,200 project because I didn’t have a contract. The client and I “agreed” on milestones verbally. When the final invoice came, they remembered different terms. Six weeks of back-and-forth. I eventually settled for $2,800 just to be done with it.
That $400 loss cost me far more than $400 — it cost me 6 weeks of mental energy, damaged a client relationship, and taught me that even friendly clients need things in writing.
Every project gets a contract now. No exceptions.
The Essential Clauses
Here are the 10 clauses every freelance contract needs. I’m listing them in order of “most likely to save your ass.”
1. Scope of Work (The Most Important Clause)
Define EXACTLY what you’re delivering. Not vaguely — specifically.
Bad: “Website redesign” Good: “Redesign of homepage, about page, services page, and contact page. Responsive design for mobile and desktop. Up to 3 rounds of revisions per page. CMS setup on WordPress with content migration of up to 20 existing pages.”
The more specific your scope, the easier it is to identify (and charge for) out-of-scope requests. When a client says “can you also build a blog?” you point to the contract: “Blog isn’t in our scope. I’d be happy to add it for $X.”
2. Payment Terms
- Total project price
- Payment schedule (50% deposit, 50% on delivery — or your preferred structure)
- Due dates (Net-15 from invoice date)
- Accepted payment methods
- Late fee (1.5% per month is standard)
- What happens if they don’t pay (work stops, you retain IP)
3. Revision Limits
“Unlimited revisions” is a path to misery. Define limits:
“This project includes 3 rounds of revisions. Each revision round allows changes to the current deliverable based on consolidated feedback. Additional revision rounds are billed at $X/hour.”
I learned this after a client asked for 11 revision rounds on a logo. Eleven. With a revision limit, that conversation is simple and professional.
4. Timeline
Start date, milestone dates, and final delivery date. Include what happens if the client causes delays:
“Final delivery estimated [date], contingent on client providing all content and feedback within 5 business days of each milestone. Client-caused delays extend the timeline accordingly.”
This clause saved me when a client took 3 weeks to provide feedback and then complained about the project being “late.”
5. Intellectual Property / Ownership Transfer
Who owns the work? Standard approach:
“Upon full payment, all intellectual property rights transfer to the client. Until full payment is received, [Your Name] retains all rights to the work.”
That last sentence is your leverage. If a client doesn’t pay, they can’t use your work. I’ve invoked this once — the client paid within 48 hours.
6. Kill Fee / Cancellation
If the client cancels mid-project:
“If the client cancels this project after work has begun, all completed work is billed at [hourly rate] for hours spent, with a minimum charge of [deposit amount]. The deposit is non-refundable.”
7. Confidentiality
Basic NDA language protecting both parties. Clients don’t want you sharing their business details; you don’t want them sharing your pricing.
8. Independent Contractor Status
Clarify that you’re an independent contractor, not an employee. This matters for tax purposes and legal liability.
“[Your Name] is an independent contractor and is not an employee of [Client]. [Your Name] is responsible for their own taxes, insurance, and benefits.”
9. Indemnification / Limitation of Liability
Cap your liability at the project price. You don’t want to be liable for $100K in damages over a $5,000 website.
“[Your Name]‘s total liability under this agreement shall not exceed the total fees paid under this agreement.”
10. Governing Law and Dispute Resolution
Which state’s law governs the contract? How are disputes resolved?
“This agreement is governed by the laws of [Your State]. Disputes shall be resolved through mediation before pursuing litigation.”
Mediation is cheaper and faster than court. Most disputes never get to mediation — the clause itself encourages reasonable resolution.
Free Contract Templates
These are the best free starting points:
Bonsai — Professional templates with e-signatures. Customizable and legally reviewed. Free with Bonsai account.
Freelancers Union — Simple, solid contract template. Free to download.
AND.CO (now Fiverr Workspace) — Good templates with some customization.
My approach: I downloaded the Bonsai template, customized it for my work, and had a lawyer review it once ($400). That single template has been used for 50+ projects with minor modifications each time. The $400 lawyer fee has paid for itself many times over.
When to Use a Client’s Contract vs. Yours
Use your contract when:
- You’re working with small businesses or individuals
- The project is straightforward
- You want to control the terms
Review the client’s contract when:
- They’re a large company with a legal department
- They insist on using their standard agreement
- The project is high-value ($10K+)
Red flags in client contracts:
- Unlimited revisions
- Net-60 or longer payment terms
- “Work for hire” (they own everything from day one, even before paying)
- Non-compete clauses (can’t work with their competitors)
- IP assignment that extends beyond the project scope
- No kill fee or cancellation terms
You can negotiate these. Most clients expect some pushback. “I’d love to work with you. I have a few suggested modifications to the contract terms — can we discuss?” is perfectly professional.
Contract Delivery and Signing
E-signatures are legally binding. Use DocuSign, HelloSign, or Bonsai’s built-in e-signature. No need for physical signatures.
My process:
- Customize contract template for the project (15 minutes)
- Send via e-signature platform
- Client signs
- Both parties receive signed copy
- Work begins after contract is signed AND deposit is received
That last point is crucial. Contract signed ≠ green light. Contract signed + deposit received = green light. Money speaks louder than signatures.
The Bottom Line
A freelance contract doesn’t have to be 20 pages of legal jargon. A clear 2-3 page document covering scope, payment, revisions, timeline, and ownership protects both you and your client.
Start with a free template. Customize it. Have a lawyer review it once. Use it for every project. The first time it prevents a dispute (and it will), you’ll wonder why you ever worked without one.