Client Onboarding Part 5 - The Design Contract - RD164

The Design Contract The Design Contract is the final part of the Client Onboarding Process. This vital part confirms that a potential client is now a paying client. In this series, I talked about the Client Onboarding Process as a whole before breaking it down into the individual components, the Intro Packet, the Client Meeting and the Design Proposal. Each of these different elements helps win over potential clients encouraging them to hire you, which brings you to this next step, the Design Contract. In the last episode, I shared a statistic with you; 48% of designers don't use a contract. I find that number mind-blowing. Not only does a contract establish you as a professional business, but it's your protection against anything that may go wrong with the project or the client. Have you ever been part of a design forum or online group where someone mentions an issue they are having with a client? What is the #1 response or comment they receive? "Did you have a design contract?" If you are part of that 48 %, I hope you take note and add a contract to your client onboarding process right away. Before I go any further, let me state that I am not a lawyer. Do not take anything I mention here as legal advice. My advice is for you to either have a lawyer draft up your contract or at least create one yourself and have a lawyer review it. If you don't have the budget to consult a lawyer, please find yourself a ready-made contract and start using it today. A quickly written, non-lawyer verified contract is still better than no contract at all. Then, once you have the means, consult a lawyer. As Mike Monteiro, co-founder of Mule Design Studio said. "You need a lawyer when you decide to stop being a design amateur and decide to start being a design professional." Here are two sources for free design contracts you can modify for your needs: Stuff and Nonsense - Contract Killer AIGA Standard-Agreement What is a Design Contract? A Design Contract is a legal terms and conditions document that defines the expectations of a project for both parties. A design contract should contain: An overview of who is hiring you, what they are hiring you to do and for how much. The respective responsibilities agreed to by both parties. Specifics listing everything included and not included in the scope of the work involved. What happens should one of the parties change their mind about anything pertaining to the project. An overview of liabilities and any other legal matters. In other words, Your design contract needs to cover your process, what the client can expect, what you can expect from the client, time frames, payment details, technical details and any other legalese you deem fit. Everything in your contract should be explicitly stated and agreed upon by you and your client before a project begins. Do you really need a design contract? Maybe you're thinking "if 48% of designers don't use a contract then how can it be so important?" Let me tell you. A contract is the only surefire way to protect you and your business' interests while working with a client. So the answer is it's crucial. You should use a design contract for every client and every project you take on. In the case of disputes, a signed contract will quickly establish if anyone is at fault, and what actions should be taken to remedy the conflict. With that said, you need to be reasonable. If your mom or sister wants you to design an invitation for their annual poker tournament, you don't need her to sign a contract. Friends and family are exempt, most of the time that is. My rule is; If what I'm designing will be used to generate money then I have them sign a contract, even if it's family. This includes charities, fundraisers and non-profits. When money is involved, it's better to protect yourself. Contracts prevent problems. You want client relationships to go smoothly, don't you? A contract can help by preventing problems before they start. A Contract protects for both parties: A good contract should benefit both parties signing it. Not only does it protect you but it should protect your client as well. A Contract shows your importance: The goal of any client relationship should be to see each other as partners. A contract establishes this. Without one, a client may think you are working FOR them instead of WITH them. They will treat you differently if you get them to sign a contract. A Contract makes expectations clear: When both parties understand their roles, the whole project will move smoothly. When do you present your contract? A great time to present your contract is as soon as you finish your Design Proposal. Everything is fresh in the client's mind, and they are receptive to moving forward. You can even use it as a stepping stone or launchpad to land the client. "That was my proposal for designing your new website. If you would like to move forward to the next step, here's a contract we can go over and sign together before beginning working on this project." Presenting your contract may be all that's needed to push the client to hire you. If the project doesn't require a proposal, you can email your contract to the client and request they sign and return a copy of it. Make sure your contract is clear that you will not start on a project until you have the signed contract in hand. Don't fall for a "The contract is in the mail so go ahead and get started." line. As a side note: If a client brings their lawyer to the meeting, you will want to have your lawyer present as well. Never discuss your contract with a client's lawyer yourself. Not all Desing Contracts are the same. Drafting a Design Contract takes time, and lawyers cost money. Although tempting, it is not advisable to create a single contract that covers every type of project you undertake. Some sections of your contract may be reusable, but most need to be flexible enough to adhere to the scope of a given project. For example; a contract for a logo design should include a transfer of Intelectual Property clause upon completion, but a contract for website design has no such requirement. It's best to have variations of your contract for each type of design work you do. What goes into a design contract? Here are different sections you will want to include in your design contract. Define the parties: Name yourself and your company as well as the individual you will be dealing with and their company name. Make sure you mention your contact person by name. It can save you having to deal with multiple people at the client's company. Project Basics: Outline the scope of the job, what project(s) the client is hiring you for and what process you will take to complete said the project(s)? Client responsibilities: List the client's responsibilities at each stage of the project (providing content, providing logins and passwords if required, proofreading). Deliverables: Define what the client will receive from you at the end of the project, as well as what you don't provide. For example: who is supplying the images and copy for the project? Do you offer layered working files at the end of the project, or do you only provide final JPGs or PDFs? Also, be sure to talk about storage and archiving. How long do you retain files once the project is complete? Is there a charge should the client ask for files in the future? Procedures: Mention the processes you follow, such as the number of proofs you will provide and the number of revisions the client is allowed. You can also state your use of third-party contractors if you use any. Timelines and deadlines: You should both agree to realistic schedules and deadlines for the project. How long should each stage take? How much time will the client have to review each step? Also, remind them of your acceptable contact schedule and contact methods, so you don't get interrupted late at night asking how the project is going. Payment details and terms: List the total cost of the project. Also, mention any payment stages or breakdowns. Include penalties for late payments as well as fixed or hourly fees for additional work outside the scope of the defined project. Confidentiality and NDRs: Because of the nature of most design projects, and how we are privy to information before it becomes public, it's a good idea to state in your contract that all sensitive information provided to either party is confidential. You can also indicate your willingness to sign a non-disclosure agreement should the client request one. Intellectual property: As the designer, you automatically own the rights to anything you create. If an IP transfer is required, state when and under what conditions this will happen. Also, be sure to mention what you do and what you don't...