Never ever, ever start a project without a contract. It doesn’t matter if you are best friends with the client or have done projects with the person in the past or even if the project is pro-bono, create a contract. Period.
Each and every project will have problems along the road to completion and just because you are buddy, buddy with the client will not elevate time delays or payment shortfalls. We hear “no contract” stories all the time. They usually start like this: “My friend ask me to design a logo for him and I didn’t think I needed a contract. Now, after I did ten rounds of revisions he isn’t happy and doesn’t want to pay the invoice. I have emails that document the process but we never signed a legal document, can I sue him for payment?”
Contracts serve two roles in our world as designers. The first one, is so we have proof that someone hired us to complete a task (design a brochure, logo, website, etc.). The second purpose of a contract is to provide details of what will be completed, by when and by whom. This is what the judge will look at if you need to bring legal action. With a nice detailed contract, you and your client should have no doubt as to when a project is completed. Outline all of your deliverables and the timing of each. And with respect to the timing aspect outline any dependences that will impact your ability to deliver on a specified date.
Also, you need to specify what will happen if the project is canceled, or put on hold. We have found that the best practice when billing a client for a canceled or suspended project is by hours spent on the job. Ideally, you have priced the project based on man-hours and you are keeping track of those hours during the course of the project. That way you can have a sound reason for the amount due at any giving time. Plus, in the contract you can state projects put on hold for more than 30 days or canceled projects will be billed based on the amount of hours incurred.
With this information in one document that both parties read and sign, you will always have something to protect you when payment comes due. Now, contracts are never going to be bulletproof, we are in the United States after all. But, if you follow what you state in the contract and create any needed scope change documents you will have a great chance of proving to a judge that you were working in good faith.
Back to our friend who has the emails, can he sue? Yes. Will he win, without a signed piece of paper showing what will be complete when, highly doubtful. The contract is your golden ticket, so get it in writing before you spend any of your valuable time designing.
