In a recent online discussion, a debate ensued among freelancers: Is a formal contract a must-have safety net or just unnecessary red tape that slows down the project and puts new clients off? Here we share both sides of the debate
The contract chat with a new client or even an existing one can feel like the ultimate buzzkill.
It’s an awkward administrative hurdle that can make freelancers nervous about “inconveniencing” a new client: What if they find my terms and conditions a nuisance and another loop to jump through? What if they give the opportunity to someone else who doesn’t want to sign a contract?
With more people turning to freelancing (Amazon just laid off 16,000 employees, many of whom are software engineers) and as the freelance economy matures, a debate is brewing:
Is a formal contract a must-have safety net or just unnecessary red tape that slows down the project and puts new clients off?
An online discussion was sparked by Calvin Hennick, a freelance writer, who admitted he often skips the paperwork. “As a freelance writer, I usually work without a formal contract,” Hennick shared in a LinkedIn post, explaining that with big corporate clients, the email trail is often sufficient.
“Almost all of my clients are big companies that work with lots of freelancers. These types of clients have never stiffed me,” explains Hennick.
The rate and the deadline are already in our email thread in black and white. Honestly, that’s all that really matters.
-Calvin Hennick, Freelance Writer
However, not every freelancer is convinced that playing it by ear is a sustainable business model.
Reputation built on agility and trust
Hennick’s approach relies heavily on reputation and the established norms of high-level corporate work. For him, insisting on a legal document for every new assignment or minor update can feel like an obstruction:
It would be INSANE of me to write back [to a quick request], ‘Hold on, now, are you sure we can get the contract executed by Monday?’
Alan Tepper, a marketing consultant and trainer who works with a variety of clients from corporates to SMEs, echoes this sentiment. He suggests experience builds a “radar” for reliability:
Sometimes the terms are included, for example, with bigger businesses. For smaller outfits, that generally come with stronger personal relationships, it’s rarely an issue. Overall, I have a very good radar on the clients I choose to work with.
–Al Tepper, Founder Lazy Marketing
Molly McHugh, a B2B Technology Content Marketing Writer, also defended the right to choose, noting that “every freelancer can (and should!) run their business however they want to.”
The “school of hard knocks”
While the trust-based approach works—until it doesn’t—many established freelancers argue that a contract is less about the “good times” and more about the “what ifs.”
Kimberly Rotter, CEO & Founder of Scaling Enterprise Content Operations, warns internal company shifts can leave a freelancer stranded:
Marketing departments pivot all the time… What if you’ve completed 90% of an assignment and they decide to cancel it before delivery? These are things that happen all the time with enterprise clients.
Nick Bouchard, a long-form content specialist, adds that contracts provide necessary leverage for late payers:
I’ve worked with a client in the past who I’m pretty sure would have stiffed me if I hadn’t put a late fee in my contract.
Key risks of working without a contract:
- Scope creep: Doing “just one more revision” for free
- Payment terms: Moving from “payment on delivery” to “payment on publication”
- Kill fees: Getting nothing when a project is cancelled halfway through
Arguably, once a contract has been agreed and signed, it should cover immediate and future engagement to some degree. However, if the scope of work changes, or you haven’t worked with them in some time, then an updated contract could be easily arranged, along with any rate or fee changes.
Freelancers, for example, can include lasting terms or boundaries, such as two rounds of revisions and an extra fee for any thereafter or payment within 7 working days on delivery.
Late payment fees can also be included. Even a last-minute turnaround assignment could call for an additional fee. When the parameters and expectations are in black and white and mutually agreed upon, there is less chance of surprises. Everyone knows what they are walking into.
Aren’t your brand and time worth a contract?
Beyond protection, many experts argue that a contract is a tool for branding. By presenting terms, you signal that you are a business entity, not just a hobbyist.
“As a lawyer, my obvious answer is going to be never start a piece of work without a contract in place,” says Rebecca Seeley Harris, a leading expert in Employment Status.
Seeley Harris says freelancers who choose not to supply or insist on a contract could be tarnishing their reputation unknowingly:
Apart from anything else, it shows professionalism and that you are running a business… I usually find that those people who don’t supply a contract are doing so because of lack of confidence.
Dave Chaplin, CEO of IR35 Shield, suggests using the contract as a “litmus test” for client quality.:
The types of clients you want will have no issue with [a contract]. The types of clients you don’t want, will.
Paul R., Co-Founder of oneXRM, poses a grounding question for any freelancer: “Would the client do work for me without a contract in place?”
Finding the middle ground on freelancer contracts
If a twenty-page legal document feels too heavy for a 500-word blog post, there is a compromise. David Elster, a Tech Lead, suggests that while “emojis are binding” in some legal jurisdictions, a plain-English summary is often enough. “It just doesn’t have to be a 300pg legalese ToS doc, it can be a plain English outline of what is and isn’t in the deal.”
Nadia Carmon, a Content Strategist, sums up the sentiment of the “pro-contract” camp:
When the company values the relationship (not just the work), they’ll make sure you’re taken care of. Trust goes both ways.
The verdict
While Calvin Hennick’s “no-nightmare” approach has served him well, the consensus among freelancer contract experts and freelancers leans toward protection. A contract isn’t an act of distrust; it’s a roadmap for a successful partnership.
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