Getting on the Same Page

One of the biggest advantages of using contracts is it allows you and your client to get a clearer idea of what the project entails. It can be used to clearly define payment terms, the project timeline, and the expected project deliverables. Our contract actually walks through and describes in clear terms our web design process. There is no need to view contracts as a necessary evil full of legal jargon. Instead, view the contract as a tool that helps both parties stay on track.

Avoiding Scope Creep

‘Scope creep’ is the project management buzzword that describes the phenomenon of ever-growing project demands. A client starts off wanting a simple website with a shopping cart, and before you know it they’re requesting live chat features, a discussion forum, and user profiles. Scope creep can also take a more subtle, more sinister form. It may involve really little things like constant requests to upload a bit of content or a suggestion that involves making one more page for the site. But, even these minor additions to the project can add up and kill your time if you aren’t careful. If you have a well-written contract and design proposal, then both you and the client can clearly see the scope of the project as originally agreed upon.

Scope creep is not necessarily bad in and of itself, as long as you have a way to deal with it fairly. After all, it’s unlikely that the client is going to know exactly what they want right when they first begin the project, and they are likely to learn things along the way that might require a shift in strategy. It is not realistic to stick rigidly to an original agreement, because things change and evolve over time. But, a contract can help you to fairly and reasonably manage a change in scope. Make sure that your contract contains provisions that lay out the costs associated with any expansion of the workload or significant change in direction that may occur during the course of the project. If managed correctly, ’scope creep’ can actually be a good thing – allowing you to get paid for doing more work on a project you are already working on.

Provide Legal Protection

Unfortunately, we live in a litigious society, so the risks of some sort of legal action are higher than ever. Do you want to appear in court without a signed contract to defend your position? On the other hand, if you are trying to collect money on a completed project, do you want to be in small-claims court without a signed agreement in hand? Obviously, we all would like to avoid this type of nasty confrontation, but even if you would never take it this far, there is no guarantee that your client will return the favor. Protect yourself with a contract. As long as you follow your end of the deal, a signed contract will come to your defense.

Even if you never actually go to court, the mere existence of a contract can really help you out. Clients who are tempted to bail will be a bit more hesitant when they realize that they made a legal agreement.

Note that a contract also provides the client with legal protection. A contract should also ensure that you, as the designer, don’t bail on your client or treat them unfairly. Be sure to explain this benefit to the client when asking them to sign a contract. Many people tend to be suspicious of contracts and suspect foul play whenever they are used. This is a false conception, though, because a contract actually protects both parties.

Weeding Out the Bad Apples

Frankly, requiring a contract is a good way to filter potentially terrible client relationships. If a client is unwilling to sign a contract, this is a sign of trouble ahead. Rather than lamenting the loss of a project, celebrate the fact that you may have dodged a bullet.

One of the biggest lessons our company has learned over the years is that we don’t want every single client we can get. Just like clients are looking for a good fit with a design company, you should look for a good fit with a particular client and project. Perhaps you’re desperately strapped for cash, and this advice sounds a bit idealistic. However, the headaches, lost time, and frustration that comes with a bad client relationship are not worth it, and often aren’t profitable in the end anyways. It definitely won’t be profitable if they bail on you mid-project or refuse to pay. But if they sign a contract, it indicates that they take the project seriously and probably at least intend to pay you.

Why Not Have a Contract?

What are the main reasons for operating without a contract? Perhaps the biggest concern is that clients won’t like them, since they may view it with suspicion. This is particularly true for smaller clients – many big ones have a lawyer on staff to look it over (and big companies expect to deal with contracts). However, as I’ve explained before, a refusal to sign a contract is a strong indication of a potential trouble client. Also, if a client seems uncomfortable about signing, take the opportunity to explain the benefits of the contract. A good contract will actually protect them as well, and it will allow both of you to get a clear idea of what the project entails.

Another objection to contracts may be that they are too time consuming. Drafting up a contract for each client is a laborious task – and this time could be better spent doing actual design work. However, in reality, you can probably make a contract template that applies to most projects, and vary it slightly for each client as needed. And with plenty of online resources to help you, writing a good design contract shouldn’t be all that difficult. In part two of this article, I’ll go over some tips on what to actually include in a design contract and provide some more resources to make the whole process a lot easier.