10 Essential Clauses Every Freelance Contract Must Include

A freelance contract isn’t just paperwork—it’s your safety net. Without one, you risk late payments, scope creep, or even disputes that can drain your time and energy. Have you ever wondered what specific clauses can protect both you and your client while keeping the project on track? 

This guide breaks down the 10 essential clauses every freelance contract must include, giving you practical insights you can use right away.

1. Clear Scope of Work Clause

A freelance contract without a scope of work clause is like building a house without a blueprint—things fall apart quickly. This clause tells the client exactly what they’re paying for and protects you from endless requests outside the original agreement.

Define Deliverables in Detail

Think of deliverables as the physical or digital “stuff” your client receives at the end. The more detail you add, the fewer misunderstandings you’ll face.

For example, instead of writing “design a website,” spell it out: “design a 5-page responsive website in WordPress, including homepage, services, about, blog, and contact pages.”

I always suggest using bullet points in this section of your contract. It keeps things crystal clear:

• Number of assets (e.g., 3 blog posts, 1 logo, 10 product descriptions)
• Format of files (e.g., PDF, PSD, DOCX)
• Platform or tools involved (e.g., WordPress, Canva, Shopify)

Deliverables written in detail act as your best defense when a client asks for “just one more thing.”

Set Boundaries for What’s Not Included

Scope creep happens when a client assumes extras are included, but you never agreed to them. That’s why it’s just as important to write down what you won’t do.

For example, if you’re a content writer, you might specify that keyword research or uploading posts to WordPress is not included unless agreed upon separately. If you’re a designer, you might say stock photography licensing or printing is the client’s responsibility.

I’ve found that adding a “not included” section actually builds trust. Clients appreciate knowing upfront what they’re responsible for, and it helps you avoid awkward conversations later.

Outline Project Timelines and Milestones

Timelines give both you and your client accountability. Without them, projects can drag on for months. Break down timelines into milestones with clear dates and outcomes.

Here’s how I usually structure it:

• Initial concept delivered: Week 1
• First draft submitted: Week 2
• Revisions completed: Week 3
• Final delivery: Week 4

Some freelancers also tie payment installments to milestones (more on that in the next section). This creates momentum, keeps communication flowing, and makes sure everyone is invested in moving the project forward.

A well-drafted scope of work clause eliminates ambiguity and ensures both parties know exactly what’s being delivered, when, and under what conditions.

2. Payment Terms and Schedules

Money conversations can feel awkward, but a freelance contract should never leave room for confusion. This clause makes sure you’re paid fairly and on time. It’s where you decide how, when, and under what conditions money changes hands.

Decide Between Hourly, Fixed, or Retainer Models

How you price your work sets the tone for the relationship. Each model has pros and cons, so it’s smart to think carefully:

• Hourly: Great for projects with unclear scope. You track time (use tools like Toggl or Harvest), and the client pays for actual hours. The downside? Clients sometimes micromanage because they’re watching the clock.
• Fixed Price: Best for well-defined projects. You charge a flat fee for the agreed scope of work. Clients love predictability, but you have to be careful with revisions and scope creep.
• Retainer: Perfect for ongoing work. The client pays a set amount every month for a specific number of hours or deliverables. This gives you income stability and saves you from constantly chasing new clients.

I usually recommend retainers once trust is built, but for new clients, fixed price or hourly is often safer.

Set Invoice Deadlines and Late Fee Policies

Invoices need clear deadlines. A common standard is “Net 15” or “Net 30,” meaning payment is due 15 or 30 days after the invoice date. I personally lean toward Net 15—it keeps cash flow healthier.

You should also state what happens if a client misses the deadline. A late fee clause (say, 2% per month) not only compensates you for the delay but also nudges clients to prioritize paying you. Even if you don’t always enforce it, having it written gives you leverage.

Pro tip: Always send invoices through professional tools like FreshBooks, QuickBooks, or Wave. These not only look polished but also automate reminders, saving you from chasing clients.

Include Deposit or Upfront Payment Requirements

Never start a project without some money upfront. A deposit shows commitment and protects you if the client disappears. The standard deposit is 30–50% of the total project cost.

Here’s how I often structure it:

• 40% deposit upfront to begin work
• 30% after first draft or milestone
• 30% upon project completion before final delivery

For smaller projects, you might just ask for a 50% deposit and 50% upon completion. For larger, complex ones, breaking it into three installments makes sense.

Clients who hesitate about deposits are usually red flags. Serious clients understand that your time and expertise have value.

A strong payment clause keeps your income predictable, avoids awkward conversations, and establishes professionalism from day one.

3. Revision and Change Request Policy

Revisions are part of the freelance world, but without limits, they can eat your time and profit. This clause makes it clear how many edits are included and what happens when a client wants “just one more little tweak.”

Specify the Number of Revisions Allowed

One of the biggest mistakes freelancers make is saying, “Unlimited revisions.” That’s basically an invitation to never-ending work. I recommend stating a clear number—usually two or three rounds of revisions.

Here’s a sample you can adapt in your freelance contract:

• Two revision rounds included in the project fee.
• Revisions must be requested within 7 days of delivery.
• Revisions apply to the original agreed scope, not new ideas.

That last point is key. Revisions are meant to improve what’s already delivered, not to sneak in new tasks. By setting this up early, you give your client structure and keep your boundaries intact.

Explain Costs for Extra Revisions or Edits

Clients often assume “a quick change” is free, but quick changes add up. Spell out what extra revisions will cost. For example:

• Extra revision requests are billed at $50 per round.
• Major changes outside the original scope require a new proposal.

I’ve found that when clients know there’s a price tag, they consolidate their feedback and get more thoughtful about what they really want. It keeps everyone’s time respected.

Think of it this way: Revisions are like refills at a restaurant. One or two might be included, but eventually, there’s a charge.

Create a Process for Handling Scope Changes

Scope changes are different from revisions. They happen when a client says, “Can you also add an e-commerce checkout to the site?” when you only agreed to design static pages.

Here’s how you can handle it smoothly:

1. Acknowledge the new request.
2. Pause work if needed.
3. Send an updated proposal with the new scope, timeline, and cost.
4. Get written approval before moving forward.

This simple process keeps projects from spiraling. I suggest even creating a mini “change request” form or template you can email over. Clients actually respect you more when you handle changes like a professional instead of winging it.

A strong revision and change policy protects your sanity, keeps projects on track, and makes sure you’re paid fairly for every bit of extra effort.

4. Termination and Cancellation Clause

Sometimes projects don’t work out, no matter how carefully you plan. That’s why your freelance contract should clearly explain what happens if either party needs to walk away. Without this clause, you risk losing time, money, or even the relationship itself.

Detail Grounds for Contract Termination

List out the reasons either side can end the agreement. This usually includes:

• Client fails to pay invoices on time.
• Freelancer fails to deliver agreed-upon work.
• Either party breaches confidentiality or other contract terms.
• Unforeseen circumstances that make the project impossible to continue.

By writing these out, you take the guesswork out of “What counts as a dealbreaker?” Both sides know the rules from the start.

Define Client and Freelancer Responsibilities Upon Exit

When a project ends early, loose ends can get messy. That’s why it’s smart to spell out responsibilities. For example:

• The freelancer must hand over completed work up to the termination date.
• The client must pay for all work completed, including any partially finished deliverables.
• Any deposits are non-refundable unless otherwise agreed.

This way, even if things don’t end on good terms, there’s a clear financial and professional framework to wrap it up cleanly.

I once had a project end halfway through because the client decided to rebrand. Because my contract had this clause, I was paid for the two weeks of work I’d already completed instead of walking away with nothing.

Include Notice Periods and Refund Policies

Give both sides breathing room by including a notice period—something like 7 to 14 days’ written notice before cancellation. This prevents abrupt cutoffs that can wreck your schedule and income.

Refunds should also be addressed. I suggest:

• Deposits are non-refundable (since they reserve your time).
• Work already completed must be paid in full.
• Refunds, if any, only apply to unused portions of retainers or future work not yet started.

Here’s the truth: A termination clause isn’t about expecting failure—it’s about being prepared. When it’s written down, both you and your client know exactly what happens if things don’t go as planned. That clarity often makes the relationship stronger, because it removes uncertainty.

5. Confidentiality and Non-Disclosure Agreement

Trust is the glue in freelance work, and a confidentiality clause makes sure sensitive client information stays safe. Think of it as a promise: you’ll respect what’s shared behind closed doors.

Protect Sensitive Client Information

Clients may share insider data—like marketing strategies, customer lists, or unreleased product ideas. Without a clear confidentiality clause, they may worry that this information could slip out.

Here’s what I usually include:

• Client documents, notes, or drafts stay private.
• Trade secrets and business strategies can’t be shared publicly.
• Access to private accounts (Google Analytics, Shopify admin, etc.) is strictly for project use.

I once had a client hand me early campaign data for a new product launch. Because confidentiality was spelled out, they felt secure sharing everything I needed to do my job properly. That kind of trust makes your working relationship smoother.

Define What Counts as Confidential

Not everything is confidential, so spelling it out helps both sides. For example:

• Confidential: internal documents, passwords, customer information, private reports.
• Not confidential: publicly available data, general industry knowledge, skills you already had before the project.

Being clear prevents misunderstandings. If you don’t define it, clients may expect you to treat even the color blue as a “trade secret.”

Outline How Confidential Data Should Be Handled

Clients often appreciate when you go the extra step of defining how you’ll protect their data. This could include:

• Storing files in password-protected folders.
• Not sharing files via unsecured channels (like sending passwords in plain email).
• Deleting files once the project ends, if requested.

I like to reassure clients that once a project is over, I’ll clean up sensitive files from my drive. It’s a simple habit that keeps relationships professional.

6. Intellectual Property Rights Clause

This is the clause that determines who actually owns the work you produce. Get this wrong, and you might give away more rights than you intended—or end up in disputes over who controls the final product.

Decide Who Owns Final Work Deliverables

Most freelancers transfer ownership once the client has paid in full. Until that happens, the freelancer technically owns the work. A typical clause might say:

• Freelancer retains ownership of all work until final payment.
• Upon payment, ownership of agreed deliverables transfers to the client.

That way, if a client disappears without paying, they can’t legally use your work. I’ve seen this clause save freelancers from being ghosted with unpaid invoices.

Address Licensing for Portfolio Use

You worked hard, so you should be able to showcase your work. I always add a line that grants me the right to display completed projects in my portfolio or marketing materials, unless the client requests otherwise.

This is especially important for designers, writers, or developers. Without this line, a client could technically stop you from ever showing your own work.

Cover Ownership of Drafts, Concepts, or Templates

Here’s where many freelancers slip up. Clients often assume they own everything you create, but drafts and raw files are different from the polished final deliverable.

For example:

• Final approved logo belongs to the client.
• Sketches, unused concepts, and source files remain the freelancer’s property.

This matters because you may want to reuse elements, frameworks, or templates in future projects. Protecting your raw work keeps your creative toolbox intact.

7. Liability and Indemnification Clause

This is the “worst-case scenario” clause, but it’s essential. It makes sure you’re not unfairly blamed—or financially ruined—if something goes wrong outside your control.

Limit Responsibility for Client-Provided Content

If the client provides text, images, or data, you shouldn’t be held responsible if that material violates someone else’s rights. For example, if a client gives you stock photos they claim are licensed but aren’t, you shouldn’t take the fall.

I usually word it like this: “The client is responsible for securing all rights and permissions for materials they provide.” Simple, but powerful.

Define What Happens if Third Parties Make Claims

Sometimes, a project may unintentionally step on someone else’s toes. Say you build a website for a client and they get sued for using a trademarked phrase. The indemnification clause should clarify who covers those costs.

Generally, each party agrees to cover their own work:

• Client covers issues with content they provided.
• Freelancer covers issues with original work they created (if proven to infringe).

That balance keeps things fair.

Clarify Freelancer’s Liability Cap

Without a liability cap, you could be on the hook for unlimited damages—something no freelancer can afford. I strongly recommend capping liability to the total amount the client paid for the project.

For example: “Freelancer’s total liability for any claim shall not exceed the amount paid by the client under this agreement.”

This way, if something goes wrong, you’re not risking your entire livelihood over a single project.

8. Dispute Resolution Process

No matter how clear your freelance contract is, disagreements can still happen. A dispute resolution clause keeps conflict from turning into chaos by laying out exactly how issues will be handled.

Decide Between Mediation, Arbitration, or Court

Think of this as choosing the playing field for resolving disputes. Each option has its own strengths:

• Mediation: A neutral third party helps both sides talk it out. It’s informal, faster, and usually cheaper. This is great if you want to preserve the working relationship.
• Arbitration: A third party listens to both sides and makes a decision. It’s legally binding but usually less expensive than court.
• Court: The most formal (and expensive) option. Sometimes unavoidable if mediation fails.

Personally, I like contracts that require mediation first. It gives everyone a chance to calm down before dragging lawyers into the mix.

Specify Jurisdiction and Governing Law

This may sound like legal jargon, but it’s actually about clarity. If you live in New York and your client is in London, which country’s laws apply if there’s a dispute?

I recommend specifying your own jurisdiction. For example: “This agreement is governed by the laws of California, United States.” That way, you’re not flying across the globe just to show up in court.

Outline Steps Before Legal Action

It’s smart to require a few steps before anyone files a lawsuit. This could include:

1. Written notice of the issue.
2. A set number of days (often 15–30) to resolve it.
3. Attempt at mediation before legal escalation.

This process gives both sides time to breathe, fix misunderstandings, and avoid unnecessary expenses. I’ve seen contracts without this clause blow up quickly, while ones that had it often ended with both sides finding a solution before things got ugly.

9. Communication and Availability Expectations

Many freelancer headaches come from unclear communication. A contract that spells this out upfront saves you from 2 a.m. client messages or endless “just checking in” emails.

Agree on Preferred Channels (Email, Slack, Calls)

Choose one or two main communication tools and stick with them. For example:

• “All project updates will be sent by email.”
• “Urgent questions may be sent through Slack during business hours.”
• “Calls must be scheduled at least 24 hours in advance.”

I recommend avoiding multiple platforms unless absolutely necessary. Otherwise, you’ll find yourself digging through WhatsApp, email, and Asana just to find one message.

Set Response Time Expectations

Clients often expect instant replies, but you’re not an on-call employee. Protect your time by setting clear response windows, like:

• Emails replied to within 24 business hours.
• Slack or chat messages replied to within the same day.
• No weekend availability unless agreed in advance.

This way, clients know when to expect updates, and you don’t burn out from constant pings. I’ve found clients actually respect you more when you set boundaries here.

Clarify Meeting Frequency and Boundaries

Meetings can eat up hours if they’re not managed. I suggest defining how often they’ll happen, such as:

• Weekly check-ins (30 minutes max).
• Monthly progress calls.
• Ad-hoc meetings only if needed.

You can also include boundaries, like limiting meetings to business hours or requiring a minimum 24-hour notice. For one of my retainer clients, I included a “max 2 meetings per month” rule, which kept the work flowing smoothly without endless Zoom calls.

10. Force Majeure Clause

This is the “life happens” clause. Force majeure (French for “superior force”) covers unexpected events beyond anyone’s control—like natural disasters, pandemics, or power outages—that prevent you from delivering work on time.

Define Events Beyond Control That Excuse Performance

You don’t want to be held liable for missing a deadline because of a hurricane or a sudden internet blackout. This clause usually covers:

• Natural disasters (storms, earthquakes, floods).
• Widespread technical outages.
• Political unrest or government restrictions.
• Pandemics or health emergencies.

By defining these events, you and your client agree on what counts as “out of your control.”

Clarify What Happens During Delays or Interruptions

This part sets expectations if something major disrupts the project. For example:

• Deadlines may be extended without penalty.
• Payments may be paused until work resumes.
• Either party may terminate if the disruption lasts beyond a set period (say, 30 days).

During COVID-19, freelancers without this clause often scrambled to renegotiate projects, while those who had it in their contracts had a much smoother time adjusting.

Outline Steps for Resuming Work After Disruptions

Finally, decide how work continues once the disruption passes. That might mean:

• Agreeing on a new timeline.
• Adjusting milestones based on lost time.
• Restarting payments if they were paused.

I like to keep this part flexible but clear. Clients want to know you’ll get back on track, and you need assurance you won’t lose the project entirely.