{"id":962,"date":"2018-04-16T19:53:00","date_gmt":"2018-04-16T16:53:00","guid":{"rendered":"https:\/\/arc.dev\/employer-blog\/?p=962"},"modified":"2025-06-10T16:53:28","modified_gmt":"2025-06-10T08:53:28","slug":"freelance-developer-contract","status":"publish","type":"post","link":"https:\/\/arc.dev\/employer-blog\/freelance-developer-contract\/","title":{"rendered":"What a Freelance Developer Contract Should Include (w\/ Templates)"},"content":{"rendered":"\n

In his now-famous \u201cF*ck You. Pay Me.<\/a>\u201d talk, Mike Monteiro of Mule Design warns that if you hear the phrase \u201cYou can trust us,\u201d walk away. <\/p>\n\n\n\n

Because, while goodwill and mutual interest are important for successful partnerships, a solid contract is crucially fundamental to any professional relationship.<\/p>\n\n\n\n

Whether you are a freelance developer, or an engineering manager hiring one, you should protect your interests with legal assurances in the form of a bilateral contract outlining the Terms of Service.<\/p>\n\n\n\n

By defining expectations, responsibilities, scope, review, and approval of work, a contract helps to keep an engagement on track to completion and ensures both parties have their conditions met.<\/p>\n\n\n\n

In this article, we will explain the vital considerations and clauses that should be in this legal document to best protect both parties working on software development projects, as well as common mistakes to avoid. Freelance contract templates and services are also suggested.<\/p>\n\n\n\n

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Contracts Are Negotiable<\/h2>\n\n\n
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\"negotiate\"\/<\/figure><\/div>\n\n\n

Both parties should keep in mind that contracts are negotiable until signed. Neither party is obligated to blindly accept the other\u2019s terms. A bilateral contract should protect the interests of both parties, and it’s perfectly acceptable to ask for revisions, changes, and additions. When negotiating a new contract, it\u2019s best to be flexible and consider the needs of your potential partner, but for the items most important to you, stay firm.<\/p>\n\n\n\n

Many freelance developers will not offer concessions on payment terms, liability, or clauses that guard against scope creep (ever-expanding project requirements). On the other hand, entrepreneurs should be sure to include their desired language on confidentiality, intellectual property, and transfer of rights. <\/p>\n\n\n\n

Either party may provide the contract, or, when using a talent matching platform like Arc, the platform will most likely have this documentation already prepared. Regardless of where the paperwork comes from, you should be knowledgeable about what\u2019s in it and the legal protections available to you.<\/p>\n\n\n\n

Vital Clauses of a Freelance Web Developer Contract<\/h2>\n\n\n\n

Every partnership and software project is unique, and the contracts that govern them should be too, but core clauses and protections will remain in place. Here\u2019s what\u2019s most important to have in freelance software development contracts.<\/p>\n\n\n\n

Expectations and Responsibilities<\/h3>\n\n\n\n

Expectations and responsibilities<\/strong> ensure all parties are clear on what role they should play, how they should cooperate, and the expected result of the engagement. The client should detail the engagement’s goals, scope, and requirements. They should also provide any information, resources, and capital that will be required to reach those goals.<\/p>\n\n\n\n

Expectations and responsibilities also need to define the service to be rendered<\/strong>. For example:<\/p>\n\n\n\n

The developer will write a content managing system (back-end logic and front-end UI) using Ruby on Rails. The developer is not responsible for inputting images, or text. The developer will perform unit and integration testing, as well as front-end testing for the latest versions of desktop browsers Safari, Chrome, and Firefox. The system will not be written for mobile browsers, and there will be no mobile testing.<\/pre>\n\n\n\n
Notice that the service to be performed clause also detailed what the developer was not<\/em> responsible for. It\u2019s important for the freelancer to specify the limit of their responsibility so that client-contractor expectations are aligned uncompensated work is avoided.<\/p>\n\n\n\n
Specific requirements may be more detailed in a document that accompanies the terms of service contract, often known as a\u00a0statement of work<\/strong>. If drafted by the freelancer, it is referred to as a\u00a0project proposal<\/a><\/strong>.<\/p>\n\n\n\n
This document should also define what will be considered a work product<\/em>, the tangible and intangible results of the service provided by the developer. Defining the work product helps to make the goals and scope of the software project explicit.<\/p>\n\n\n
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\"software<\/figure><\/div>\n\n\n
Independent Contractor Clause<\/h2>\n\n\n\n
The independent contractor clause is important to avoid undesired taxation. Without establishing the independent nature of the service exchange, the client will have to pay employee taxes, and the developer will not be able to deduct business expenses as a sole proprietor. <\/p>\n\n\n\n
A standard independent contractor clause looks something like this example:<\/p>\n\n\n\n
Each Party defined above shall act solely as an independent contractor, and nothing in this Agreement shall be construed to give either Party the power or authority to act for, bind, or commit the other Party in any way. Nothing within this contract shall be interpreted as having established a relationship, agency, partnership, or joint venture between the Parties.<\/pre>\n\n\n\n
Work Report<\/h3>\n\n\n\n
A regular work report<\/strong> is the primary means for communication and feedback between developer and client and is especially important when the client is contracting a remote software developer. To ensure smooth progress on the project, it is best to lay out exactly how the work report will be coordinated.<\/p>\n\n\n\n
Depending on the needs and velocity of your software project, various time increments may be set for work reports to be submitted, though weekly work reports are common. For the given period, the developer should inform the client of the tasks completed and the results. The client will then have a certain number of days to review and approve or disapprove the work report. The report can also detail what tasks are up next in the pipeline, and any questions or issues encountered on current tasks.<\/p>\n\n\n\n
The more specific the better. You can designate dates or days of the week for reports to be submitted, reviewed, and returned. Additionally, the contract should name the individual that will be responsible for receiving and reviewing the work report. It\u2019s best to avoid multiple points of contact, which can result in more back and forths, delays, and conflicting feedback.<\/p>\n\n\n\n
A work report ensures that everyone is on the same page as the project moves forward and errors are caught early before they can snowball and derail a project.<\/p>\n\n\n\n
Payment Terms<\/h3>\n\n\n
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\"Show<\/figure><\/div>\n\n\n
Write clear payment terms in your contract to help avoid any potential confusion or compensation delays, which can stall your project and sour relations with your developer. Whether you use fixed cost, hourly, or retainer-based payment, the amount will be derived from the hourly estimate or the actual hours worked.<\/p>\n\n\n\n
Like everything else in your contract, payment terms should be specific. Here\u2019s what to include:<\/p>\n\n\n\n