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A project contact is a binding agreement that exists between two parties in the process of executing a particular work. This type of contract also exists in freelancing. Based on its definition, it plays a functional role with legal back up while both parties fulfill their terms and conditions, payment, liability, and obligation. There are two main types of project contracts that a freelancer might find interest in signing with clients.

These project contracts are the fix price contract and a reimbursable contract. The reimbursable contract is also known as the cost plus fee contract. These types of project contracts apply to the freelance business, and it is worthy of note that the fix price contract includes:

  • fixed-price contract
  • lump-sum contract
  • lump sum turnkey
  • progressive LSTK contract.

The reimbursable contract includes cost plus fixed fee contract, cost-plus incentive fee, cost plus award fee, cost plus a percentage of value. And cost plus with a guaranteed maximum price. 

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Choosing any of these project contracts is essential if you want to have a successful freelancing career. This decision is vital as a freelancer or any other independent agreement is open to risk in this present world of freelancing. This vulnerability is the main reason why a freelancer should make use of the project contract to bind a new client and himself before starting any work. 

However, some freelancers rely on verbal agreements via emails with clients, which is not safe enough and creates some loopholes on such projects. These specific groups of freelancers are prone to cheat. It is then good for you as a freelancer to spell contract details out and have it signed before starting any project. 

Project contracts protect freelance work and freelancers from unforeseen circumstances. It is beneficial to both the client and the freelancer, as it helps to clear any doubt about the other party involved in the project. The following are ways to present the best project contract that keeps both parties in safety mode. 

1. Be thorough and specific 

It is essential to state all terms and conditions before starting any project. These terms and conditions should include services you will not provide as a freelancer and those services you are ready to offer the client. This act will make the project contract to be specific to the services to render for the agreed price. Sometimes, clients, too, might require freelancers to sign a nondisclosure agreement that will protect their confidential information. 

2. Determine your rate of payment

There are professional ways to charge the client in freelancing projects. This rate of payment should be explicitly stated in project contracts. You can bill clients by stating your fixed price. This fixed price method of billing clients will indicate your amount for the whole project. In case that method is not suitable for the project, then you can bill clients per hour spent on the project. Freelancing plans with this type of billing are called hourly jobs.

You can set $50/hour, depending on how you value your time. Fixed-price projects are less beneficial to freelancers as additional hours are required for the project. All you need to do is choose the best billing method before signing the project contract. 

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3. Turnaround

A freelancer should know how many hours it takes to complete the specific freelancing project. It is essential to meet the delivery deadline set by clients on the project contract. This act will prove you like the best freelancer for the project. For this reason, you need to set a turnaround that is most convenient for you to meet.

Conclusion

All these tips on freelancing project contract should be considered signing for it. Perhaps you don't know how to set project contract details, be assured that you can download a professionally prepared project contract. This act will keep you safe and earn the trust of your freelancing client for the project.

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