To Contract or not to Contract

My instructors and advisor at college drilled into me “Don’t work without a contract.” The Graphic Artists Guild (GAG) and American Institute of Graphic Arts (AIGA) recommend that designers always work with a contract.

However, there are designers that don’t. My sister doesn’t although she says she should and I’ve met other designers who don’t including some people in online groups of which I belong. One person claimed that their communication with the client is so good they don’t need a contract. Another person said they have never worked with a contract and will never, ever work with a contract. So there are those who choose not to but I don't understand being adamantly opposed to it.

What is a contract?

It’s an agreement between the client or their representatives and the designer. It can be a written agreement or verbal and in the US a verbal agreement is considered binding. I know a technical writer who is satisfied with a handshake if the project is less than $1,000. The potential problem is that verbal agreements and handshakes can be hard to prove in court. If there isn’t a lot to lose that may not be a problem.

Written agreements can be a formal contract or a string of emails. Either method is a form of documentation that helps the client and designer.

What does a contract do?

Coming out of the IT world and hosting meetings, I know that if you have 10 participants you have 10 different versions of what was discussed and agreed on in a meeting. So notes are taken and meeting minutes are sent to all meeting members. This ensures that everyone has a similar understanding of the scope of a project, responsible parties know their tasks, and everyone knows the next steps in the project.

A contract can function in the same way. It is a communication between the designer and client or their representatives. It is designed to protect both the client and the designer and to ensure both know what to expect. If there are any questions, both can refer to the contract.

What is in a contract?

The contract can include the description of the project, the scope, usage rights, the designer’s responsibilities, the client’s responsibilities, schedule of deliverables, estimates, an indemnity clause, cancellation and refund clauses, royalties, list the expected deliverables, late fees, purpose and use of the deliverable(s).  Contracts are not written in stone and, if necessary, amendments can be added. There are a lot of sample contracts online and the GAG handbook has several contract templates that can be customized for your specific project.

When I first started freelancing I was hesitant to bring up a contract but I have learned that clients who balk at signing a contract are not reliable. That should be seen as a red flag. If they won’t even discuss and negotiate a contract, walk away.

I’m still working on a balance between covering what is needed and over doing it. I have a tendency to add everything but the kitchen sink when it’s not necessary. Then I’ll swing to the opposite end and have a bare bones contract that can leave out important clauses.

My opinion

Whether you do a formal contract or something informal in emails it is important to have something in writing so that all parties know what’s expected and what's involved in the project.

The Dreaded Question: How much do you charge?

When I first started promoting myself as a freelance graphic designer, showing people my portfolio and handing out my business cards, my target audience was individuals and small businesses. They’d tell me what they wanted, I’d calculate an estimate and the response would be “I’ll think about it” which really meant no.

After running into this response time and again, I would cringe when asked for the cost. I tried quoting an hourly rate; tried quoting for a project; tried quoting a flat fee. “I’ll think about it” was still the response.

It can be a struggle to decide how much to charge for your work. You can tell yourself you need enough to live on and calculate based on how many hours you spend on a design, travel, overhead, and experience. You think you’ve come up with a reasonable price for someone just starting out. But you don’t get any clients.

And here’s the thing, it’s not the cost. Small businesses aren’t as cash strapped as they make themselves out to be but they are choosy about where they spend their money. They might mention ROI. What you need to do is persuade the client that your services are worth the investment. I found that if you just frame the discussion in terms of money you’re likely not to land the client. That’s why I started using the paper towel analogy, “Would an employer hire you if your resume was on a paper towel?” Talking about what graphic design can do for their business and the importance of having a professional look for all their marketing materials will help land the client. Then you can discuss cost.