Essential Clauses to Include in your Agency Contracts
Protect yourself and your small business by ensuring your customer agreements include these important clauses.
An often overlooked part of being a for-hire developer/designer/creator is the contracts you sign with your clients. When we started Apsis Labs back in 2014, neither Noah nor myself had ever authored a client-services contract, let alone negotiated one. When it came time to sign our first client, we did what made sense at the time: we Googled for "example freelance services contract" and we used what popped up. When we needed an NDA? Same deal. Employment agreement? Inventions & Confidentiality? Yep.
And you know what? This worked just fine — until it didn't. See, contracts can feel like a formality, but they exist to protect both you and your clients. Because contracts mostly describe what to do when a relationship breaks down, discovering that your agreement offers inadequate protections can often come when it's too late to do anything about it.
I know first-hand that when you're starting out, the most important thing is to land clients, and the exact language of your agreements seems like a problem for future you. But if you're successful, and you keep signing clients, eventually future you will have to deal with all the little traps you may have set for yourself.
Your contracts aren't just paperwork—they're your safety net. Protect yourself and your clients by standardizing your contracts to include these important, plain-language clauses.
Before we dive in, here's a quick disclaimer: I’m not a lawyer. For specific legal advice, it's always best to consult a professional. But from my experience, here are the things you absolutely need to include in every contract.
1. Force Majeure: Protecting Against the Unexpected
Life is unpredictable, and sometimes things go wrong. Whether it’s a natural disaster, an illness, or some other unexpected event, a Force Majeure clause can protect you from penalties if you can’t meet deadlines. A couple of years ago, I broke my leg and spent five days in the hospital. Thanks to the Force Majeure clause in our contracts, any potential disputes about delays were covered. This clause ensures that neither party is liable for delays or non-performance due to circumstances beyond their control.
Why It Matters:
- Protects you if you can’t deliver on time due to unforeseen events.
- Outlines clear guidelines on how to handle project delays or cancellations.
2. Ownership of Work Product: Who Owns What
It’s critical to clarify who owns the work product you create. There are several options here, from the client having total ownership to you retaining rights and licensing your work to them. Choose what works best for your business and spell it out in the contract.
Key Points:
- Total Ownership: The client owns all rights to the work once payment is made.
- Licensing: You keep ownership but license the work to the client for specific uses.
- Shared Ownership: Both parties have certain rights to the work.
Why It Matters:
- Prevents disputes over intellectual property.
- Clearly defines how the work can be used or modified.
3. Time Off for Holidays: Don’t Forget Your Breaks
When you’re billing by time and materials, it’s easy to forget to include time off. I made that mistake for almost three years before it became an issue. Make sure your contract specifies that you’ll be taking time off for holidays. It’s a small detail, but it can make a big difference.
Why It Matters:
- Sets clear expectations about your availability.
- Helps prevent burnout by ensuring you get the breaks you need.
4. Single Point of Contact: Simplify Communication
If you’re working with a larger organization, things can get complicated fast. That’s why it’s crucial to specify a single point of contact in your contract. This person will be responsible for giving instructions, approvals, and feedback on behalf of the client. Trust me, this can save you from the headache of getting conflicting directions from different departments.
Why It Matters:
- Prevents miscommunication and conflicting instructions.
- Saves you time by avoiding back-and-forth with multiple people.
5. Finite Term: Know When the Contract Ends
Always know how long your contract binds you. If your agreement says you can’t talk about your involvement for five years, that’s five years where you can’t showcase your work to future clients. Make sure your contract clearly states how long the terms apply.
Why It Matters:
- Allows you to plan your future projects without restrictions.
- Keeps you from being tied down longer than necessary.
6. Permission to Publicize Work: Show Off Your Skills
Want to add that amazing project to your portfolio? Make sure you get permission upfront in your contract. It’s much easier than going back later to ask if you can showcase the work. Set the expectation from the beginning that you’ll be able to use the project in your portfolio.
Why It Matters:
- Ensures you can use the work to attract new clients.
- Avoids awkward conversations about permissions long after the project is done.
7. Standardized Contracts: Simplify Your Workflow
One thing I’ve learned is that standardizing your contracts can save you a lot of time. Having all your clients under the same terms makes everything easier to manage. Plus, it ensures consistency across your projects, which is especially helpful as your business grows.
Why It Matters:
- Saves time with a consistent contract template.
- Reduces the risk of missing important clauses in individual contracts.
Final Thoughts
Writing a solid services agreement isn’t just about protecting yourself—it’s about setting the stage for a successful partnership with your clients. By including these key elements—like force majeure, ownership of work, and clear communication channels—you can create a contract that works for both you and your clients.
Remember, while these tips are based on real-world experience, they’re not a substitute for legal advice. Always consult a lawyer to tailor your contracts to your specific needs.
And if you’re looking for a tool to make creating and managing contracts easier, check out Ream. We built it with freelancers and small agencies in mind, so you can manage your contracts without the hassle.
Got any must-have clauses you always include in your contracts? I’d love to hear about them!