Creating solid client contracts is one of the most important steps in protecting your business and ensuring smooth client relationships. In fact, businesses that do not use written contracts are 15% likely to face missed opportunities, legal difficulties, and financial losses. Contracts clearly lay out the expectations, responsibilities, and payment terms, making them essential for freelancers, agencies, and businesses of all sizes.
However, starting from a blank piece of paper to draft out a contract may be discouraging, especially if you have no legal background. Worry not, this guide presents you with a step-by-step guide with free and ready-made templates to make the work easier for you.
Free Templates for creating a Client Contract
Want to seek an easy method of developing contracts that will be used to deal with clients? Check out our selection of absolutely free client contract templates so that you can use them with no delay! Below are some other templates that you can consider using.
- Bookkeeping Contract Template
- Video Production Contract Template
- Freelance Graphic Design Proposal Template
- CFO Services Proposal
Each template includes key sections like:
- Scope of work
- Payment terms
- Deadlines and milestones
- Confidentiality clauses
- Termination policies
These templates are developed to assist you in getting moving fast with no requirement for direct legal experience. These are fully customizable, and therefore you can adjust them to best suit your particular project or business needs. Check out more proposal templates now and streamline your contract creation process!
What Is A Client Contract?
A client contract is an agreement with a client as to the terms of service, which are legal, professional, or business between the service provider and the client. It spells out the roles and duties, rights and duties that the two parties are supposed to fulfill so that they do not develop a contractual dispute or even go to court.
Why Do You Need a Solid Client Contract?
A solid client contract defines expectations, responsibilities, and payment terms, minimizing misunderstandings and disputes. Here are a few more reasons why you need a client contract.
Clear Expectations: When a contract is prepared well, it means that both parties will have agreed on the expected terms, and this cuts out disputes and misunderstandings.
Protects Both Parties: It protects your and your client’s best interests by documenting the activities, time schedules, and the corresponding payment structure.
Prevents Scope Creep: This also aids in preventing one from getting involved in unnecessary work that was not discussed at the time of hire in the first place, therefore reducing stress.
Payment Security: Pricing policies indicate when you are to receive payment in advance so that you are able to avoid issues concerning delayed payment or non-payment.
Professionalism: That way, you are serious with your proposal, and it looks more formal, which gives your clients an assurance.
Dispute Resolution: In case of any dispute, the recourse is always the contract because everything has to be done legally and rightly.
Legal Protection: In case something does go wrong, you get a legal ground that can assist you when dealing with possible risks or liabilities.
Accountability: This has the effectiveness of making both you and your client responsible for work to be delivered to meet certain standards.
How To Create a Client Contract?
Creating a client contract during client onboarding might seem daunting, but breaking it down into manageable steps can make the process straightforward and efficient. Below are the steps that are easy to follow.
Step 1: Identify the Parties
In this step, you write down your business name and the client’s name. Be sure where the authority to sign the contract is and know who has the power to sign the contract.
Step 2: Define the Scope of Work
Clearly state what is expected of you in terms of dosages you will be supplying. This can include specific tasks, deliverables, or anything else you and the client have agreed on.
Step 3: Set the Timeline
Include the starter date and the date on which the project will be completed. It is also important to list down any deadlines that are relevant or any major event that will happen in the near future.
Step 4: Outline Payment Terms
Clarify the amount that the client is going to pay, the time period at which the client will make the payments, and methods of payment allowed like bank transfer, PayPal, and many others.
Step 5: Include Revision Guidelines
If your work includes revisions, mention how many rounds are allowed and what happens if extra edits are requested.
Step 6: Add Confidentiality Clauses
If the project ha confidential information, add a non-disclosure clause to ensure that both the parties’ information will not be leaked and shared to other parties.
Step 7: Write a Termination Clause
Explain the criteria under which either party can cancel the contract. This could involve things like nonpayment or project delays.
Step 8: Clarify Ownership of Work
Decide who will own the rights to the work you produce. Will the client own it, or will you retain certain rights?
Step 9: Address Liability and Disputes
Add a section that covers how to handle any legal issues or disputes that might come up. You can also limit your liability to protect your business.
Step 10: Get Signatures
At the end of the contract, write the names of the parties and leave space for them to sign. Once signed, it becomes official.
Pro Tip: Choosing the right e-signature tool can save you time and hassle. For simple, practical advice on what to look for, be sure to read our blog 8 tips to consider while choosing an e-signature tool.
12 Essential Elements to include in a Client Contract
1. Parties Involved
Names and details of both the service provider and the client.
2. Scope of Work
A clear description of the services to be provided and any deliverables.
3. Timeline/Deadlines
The project start and end dates, including specific deadlines for key tasks.
4. Payment Terms
Details on pricing, payment schedules, due dates, and payment methods.
5. Revisions and Edits
Guidelines on how many revisions are included and the cost for additional work.
6. Confidentiality
Clauses to protect sensitive information shared during the project.
7. Termination Clause
Conditions under which either party can terminate the contract.
8. Dispute Resolution
If a problem emerges, take steps to resolve it, such as mediation or arbitration.
9. Intellectual Property
Who owns the work created during the project?
10. Liability and Indemnity
Specifies liability limits and protection against legal claims.
11. Force Majeure
Defines what happens if unforeseen events prevent the work from being completed.
12. Signatures
Signatures of both parties confirming agreement to the contract terms.
How Cone Proposal Software Can Help You Create Efficient Client Contracts
Cone Proposal Software is one of the most efficient, functional, and inexpensive tools for creating proposals, making the bill and receiving payments to accountants and other employees. Cone is even more affordable than its counterparts with per-user monthly costs starting at $8.
Cone offers and easy to use platform that is powerful and efficient in allowing professionals to work smarter and increase productivity. The software is easily compatible with other vendors, billing is done automatically, and information about payment options and billing is provided; therefore, it is an ideal software all businesses should consider using.
Best Features
Flexible Proposal Editor: Customize proposals to meet your exact needs and impress potential clients.
Automated Invoicing: Ensure that proposals turn into invoices after acceptance to lower administrative work.
Native Integrations: Integrate seamlessly with applications such as Xero, QBO, Stripe, and GoCardless to suit your online business.
Quotes and Contracts: Easily create detailed quotes and ensure legal compliance with customizable contracts.
User-Friendly Interface: A simple interface that minimizes the learning curve and allows quick adaptation.
End-to-End Platform: Comprehend all proposals, billing, and payments in one program, so you don’t need anything else.
Sales Pipeline Management: Manage and nurture leads to ensure all opportunities are explored.
Automatic Billing and Invoicing: Link your proposals to the automated billing system so that you do not have to spend too much time preparing invoices.
Multiple Payment Methods: Credit card payment, debit card payment, payment through direct debit, through credit and through debit, both with the provision of automatic charging.
Electronic Signatures: Securely and quickly sign proposals with e-signature facilities, saving time for both parties.
Pricing:
- Essentials: £6.5 / $8 per user per month (billed annually)
- Growth: £9 / $11 per user per month (billed annually)
Ready to enhance your business operations? Sign up for Cone today and start experiencing the benefits!
Wrapping It Up: Why a Solid Client Contract Matters
Having a clear client contract mainly helps in having a smooth project and with successful results. Self-explaining contracts eliminate possibilities of misunderstanding, disputes, or non-payment by the client, thus benefiting the consultant. Here we have provided free templates, and you can easily use any of them to start and then modify the contracts as you want.
You can also check out Cone proposal software to create your proposals and contracts.
Sign up today to experience it for yourself.
FAQs
- How detailed should my client contract be?
Your contract must leave no room for confusion in the future; hence, it should contain all details of your project, such as the project scope, the payment structure, and the timelines for the project.
- Can I apply the offered templates to any type of project?
Yes, you can customize the templates for various projects. Just fill in the specific details for your service and client to make them fit your needs.
- How can I make a contract legally binding?
A contract becomes legally binding if both parties sign and date it. To avoid future disagreements, ensure that all terms are explicit and agreed upon before to signing.
- What do I do if a client fails to pay on time?
Refer to the payment conditions specified in your contract. If the client fails to pay, send a friendly reminder. Consider late fees or further action as outlined in the contract.