Anyone providing services to a client must have a clear and fair agreement before they start the work. In this post, we’ll showcase how to get a service contract with LawDistrict UK, the need for plain language, and other essential tips and details.
Use Simple (But Not Vague) Language
Simplicity is at the heart of clarity. This means you must work to avoid legal jargon, or you might confuse the other party. If you (or your client) simply have to include any specialist terms, define them within the service contract.
However, you must still be specific. Vagueness will just leave you (and possibly the other party) uncertain about your services. Only sign the contract if it clearly outlines exactly what your client expects of you.
To help with this, your agreement should include specific timelines and expected milestones. It’s often not enough to know when the work has to be done. You also need clear statements of how the overall project needs to progress.
Including Fair Payment Terms
Don’t let yourself become one of the many freelancers facing late payments, estimates of which vary between 20% and 40% of all independent contractors. When it comes to payments, here’s what your service agreement should include:
- The amount the client owes (per project, milestone, hour, etc.)
- A statement on whether the price is fixed or subject to scope changes
- Payment schedules, i.e. 50% upfront, 50% upon completion
- Accepted forms of payment, with at least two negotiated options
- Invoicing procedures, including steps for handling an invoice dispute
Most importantly, however, you’ll need a late payment clause, which adds an extra fee when a client doesn’t pay by the deadline. If they still don’t pay after this point, you can reserve the right to end the work prematurely.
The Importance of a Contract Template
Your service contract is only worth signing if it can withstand scrutiny. You’ll need a form that can cover every base without breaking the bank. Luckily, there are plenty of websites that offer these documents as pre-written templates.
Any reputable service contract template site can give you a fair, low-cost (or perhaps even free) agreement. Only use a template if it includes the following:
- Details of all relevant parties
- A clear outline of the service’s scope
- Payment terms (see above)
- Each party’s obligations/responsibilities
- The option to add a confidentiality clause
- Guidelines on how to resolve disputes
You should also be able to choose the type of contract you’re drafting. This includes fixed-term, ongoing, one-time, and retainer-based agreements. Even if the client would rather use their own contract, check a template to see if theirs has every requirement.
The Contract’s Termination Conditions
Your contract should ideally include a date by which your services will be contracted until. You should also add extra provisions that let either party end the agreement early if necessary.
For example, if circumstances prevent you from committing to the project’s overarching timeline, you could simply end the contract with no ill will, provided you give notice. Thirty days is usually enough time for the client to find someone else or work around your absence.
Alternatively, one party might break the contract. The client may, for example, miss the invoice’s due date. A relatively minor breach doesn’t have to void your full agreement. Depending on the infraction, you can give them a set number of days to fix it.
Amending the Contract
Service agreements should be at least a little bit flexible; neither party can always predict where a project goes, after all. Consider adding a formal procedure for amending the contract, even mid-project. Here are the usual steps for adding service contract amendments:
- One party proposes a change (in writing)
- The other party reviews it
- Both parties signed the amendment
Get every change in writing; never rely purely on verbal agreements. Though emails have more “backing” than a simple in-person promise, they’re still no substitute for changing the contract. It might, however, be more acceptable to allow minor changes over email.
Reviewing the Final Agreement
Read the full contract from cover to cover once it’s ready. You might want to bring a lawyer in to look it over and see if there are any holes. If you made it using an online template, this shouldn’t be a worry, but it can’t hurt to confirm.
Don’t rush into signing. If something doesn’t feel right, address it, or ask the other party if they’re willing to amend it. Once you sign the contract, you can’t always easily get out of it, so you must make sure you know what you’re agreeing to.
Final Thoughts
Only a well-written contract template can help you write a clear service agreement that keeps the signing parties safe. So long as you take the above into account, you’ll have no problem getting paid, or ending or amending the contract.
