Payment Terms: Get Paid On Time
The biggest challenge for freelancers is late payment. Clear payment terms in your T&C protect you and set client expectations. Don't let payment drift — lost income adds up.
Your T&C should specify:
- Rate or quote: Hourly rate, project fee, or per-deliverable cost
- Invoice timing: "Invoice issued upon project completion" or "weekly invoices for ongoing work"
- Payment due date: Industry standard is "Net 14" (due in 14 days) or "Net 7" (due in 7 days). Shorter is better for freelancers.
- Late payment consequences: "Invoices not paid by the due date will incur a 1% monthly interest charge" (or your chosen rate). This is enforceable under Australian law.
- Payment method: Direct bank transfer, PayPal, etc.? State your preference.
- Retainer deposits: If you require a deposit to start, state: "50% deposit due before project begins, balance due on completion"
Scope of Work & Revision Limits
Scope creep is the freelancer's nightmare — clients ask for "one more tweak" repeatedly until you've done 3x the work for the same fee. Set clear revision limits in your T&C.
Your T&C should state:
- Revision limit: "The quoted price includes 2 rounds of revisions. Additional revisions: $X per round" or "Up to 5% of total project hours."
- What counts as revision: Minor edits? Layout changes? Content rewrites? Be specific: "Revision = changes to approved work. New requirements outside original scope incur additional charges."
- Change request process: "Change requests must be submitted in writing. We'll provide a revised quote and timeline."
- Out-of-scope work: "Work outside the agreed scope will be billed at $X/hour or quoted separately"
- Client delays: "If the client delays feedback or approval beyond 5 business days, timelines will be extended accordingly"
A clear scope document attached to your T&C is even better. It forces clients to commit upfront and prevents disputes.
Intellectual Property & Ownership Rights
Who owns the finished work — you or the client? This must be crystal clear, especially for design, writing, or development work.
Common approaches:
- Full transfer: "Upon payment in full, all copyright and IP rights transfer to the client." (Most clients expect this)
- Usage license: "The client receives a non-exclusive license to use the work. You retain ownership and can reuse for portfolio/case studies."
- Portfolio rights: "You retain the right to display the work in your portfolio and case studies, even after full payment"
- Custom vs. template: If you use templates or pre-built components, state: "Work is based on licensed templates. You do not own the underlying template."
Be explicit. "All IP transfers upon payment" is clear. Ambiguous ownership causes disputes.
Kill Fees & Cancellation Policy
What happens if the client cancels mid-project? A kill fee protects you from losing income on work already done.
Your T&C should state:
- Kill fee structure: "If cancelled before 50% completion: 50% of project fee due. After 50%: 75% due. Full fee due if cancelled after delivery."
- Cancellation notice: "Cancellations must be submitted in writing. Work in progress will be completed and invoiced."
- Client-caused delays: "If the client delays the project by more than 30 days, a project restart fee of $X applies"
- Incomplete information: "If the client fails to provide required information, the project timeline will extend and completion may be delayed"
A kill fee is fair — you've already invested time and turned away other clients. Make it part of your standard terms.
Limitation of Liability & Service Guarantees
If something goes wrong (you miss a deadline, deliver subpar work), what's your liability?
Your T&C can state:
- Liability cap: "Our total liability is limited to the fees paid for the project"
- Exclude indirect damages: "We're not liable for lost profits, lost business, or reputational harm"
- Support period: "We provide X weeks of post-delivery support for bug fixes. After that, additional support is billed at hourly rate."
- Warranty period: "We warrant the work will function as described for 30 days. Thereafter, support is provided on an hourly basis."
However, you CANNOT exclude liability for:
- Gross negligence (missing entire project deadline)
- Fraud or intentional misconduct
- Breach of confidentiality
- IP infringement (using stock photos you don't have rights to)
Confidentiality & NDA Clause
If you're doing sensitive work (marketing strategy, product development), clients may ask for confidentiality. A basic NDA clause in your T&C is standard.
Your T&C should include:
- Confidentiality obligation: "You agree not to disclose client information to third parties without consent"
- Portfolio exception: "Confidentiality does not prevent use in portfolio or case studies (anonymized if requested)"
- Duration: "Confidentiality obligations extend for 2 years after project completion"
- Client's responsibility: "The client is responsible for securing their own data and backups"
Required Disclosures for Freelancers
- Your business name and ABN (if you have an ABN as a sole trader or company)
- Contact email/phone
- Tax registration: If required, mention you're registered for GST
- Dispute resolution: "Disputes will be resolved through mediation or small claims court"