Your SlideShare is downloading. ×
How to Freelance for Mobile Developers Lesson 4 - Creating Contracts or  Service Agreements
Upcoming SlideShare
Loading in...5

Thanks for flagging this SlideShare!

Oops! An error has occurred.

Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

How to Freelance for Mobile Developers Lesson 4 - Creating Contracts or Service Agreements


Published on …
How to Freelance for Mobile Developers Lesson 4. In this episode we will discuss what a service agreement is, why you need one for every project and how to go about putting one together.

Published in: Education, Business, Technology
1 Like
  • Be the first to comment

No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

No notes for slide


  • 1. How to Freelance for Mobile Developers Lesson 4 of 6 Creating Contracts or Service Agreements
  • 2. The Biggest Mistake Most Freelancers Make● Probably the biggest single mistake new freelancers make is taking on a project without doing up a formal written agreement.● If you operate without any kind of written agreement, you will get burned, its just a question of time, so dont take the risk.● People new to freelance often think that doing up a formal agreement will scare away customers or that they dont have the money to pay an expensive lawyer to create one.
  • 3. Keep it Simple● No need to get all legalese on anybody● Keep your agreements simple● Keep it clear● Use plain language● Keep it short● Bulleted lists work great● The majority of problems that will happen on a project usually revolve around a mismatch in expectations
  • 4. A Few Things Every Service Agreement Should Have There are some basic things every service agreement should contain, which includes:● The name, address and contact details for the client and the freelancer● The scope or description of the project and work you will be doing for the client.● The responsibilities that you will take on during the project● The responsibilities that the client will take on during the project● An indication of time estimates and finishing dates● Your rate or estimated cost of the project and payment schedules● A termination clause● Tax information and retainer info● IP and ownership● A place for a signature and date for you and your clients
  • 5. Contact Details● Your service agreement should have your name address, company name (if you have one), postal code or zip code. Youll need the same info about your client which you may need to look up or ask them for.● Youll want the name of the person who actually signs the contract in addition to their company name if they have one.
  • 6. Scope and Description● Youll want to state, in clear and simple terms the nature of the work you will be doing for the client.● You are obligating yourself to do anything on this list, so be as clear as you can. “Build an App” is not sufficient. What kind of App? What features will it have? What technologies will you use? How will it be tested?● If you are to loose with the scope of your agreement, what happens quite often is clients ask for more and more little things to be added or changed and may expect you do do them for free.● Be very clear in your agreement that items and requests that fall outside the scope are billable and may add additional costs.
  • 7. Your Responsibilities● In addition to clearly describing the work you are about to undertake you should also establish other ground rules before the project starts like:● What your contact hours are and the modes of communication you will use. Are you a 9-5 type and prefer talking on the phone? Maybe youll work on the weekends and use Skype to talk with your client.● You may wish to state that you are not responsible for any marketing and business development for the App, unless you are providing this service.● You should state that you will notify the client when a request falls outside the scope of the agreement.● You should state that you will make the client aware of any events and obstacles that come up that could impede progress and change the timeline.
  • 8. The Clients Responsibilities● You may wish to state that the client is responsible for all marketing and business aspects of the App, unless you are providing these services as well.● You should state what assets the client is expected to provide for the project, including text, images, audio or any other assets that you wont be providing.● You should state when and how the client is responsible for paying you. I would recommend you break the project up into chunks and schedule payments upon initiation or completion of each chunk. Waiting for one big payout at the end of a project has just about done in many a freelancer.● You should state that the client is responsible for providing timely feedback and answering any questions you may have.● If the App needs to be approved by Apple, the client should be aware you can not guarantee that the app will be approved.
  • 9. Time Estimates and Finish Date● You should usually provide some kind of time estimate as to when different parts of the project will be done and when things will wrap up.● Unless you are absolutely sure you can get something done by a particular date, always state that they are estimates and could be subject to change.● Unexpected things will always pop up in pretty much every project, so make sure you have some wiggle room as far as time goes to deal with this.● I usually like to give a rage estimate. (ie I think this feature will take 3-7 days to implement).● Dont forget to actually keep track of the time you actually spend on the project.
  • 10. Your Rate and / or Project Cost● If you are working hourly, than the agreement should clearly state what your hourly rate is. If you dont work weekends, and a client puts the rush on you, you may also have a higher rate you charge for rush jobs.● If you are quoting a fixed price or range for the project cost, this should be clearly stated in the agreement so there is no chance of confusion.
  • 11. Termination Clause● Despite your best efforts, sometimes things dont always work out.● Locking yourself at the hip with a client can be bad news.● Heres the deal, if you arent happy working with the client, and they arent happy working with you, then you shouldnt be working with each other.● Provide a way for you or the client to bail out if need be, so things dont get ugly.● Because I do all my projects in an Agile phased approach (think small chunks), I allow my client or myself to get out at the end of any given phase if things just arent working out.
  • 12. Tax Info● If you will be collecting taxes, you should state your local tax rate and your tax or business number so you can account for this properly.● If you are under a certain yearly limit, you may not have to charge or collect taxes, so check with your local tax authority.● Be careful, because once you do pass a certain level of earnings you will most likely have to collect tax on your projects, regardless of whether you are a business or not.
  • 13. Retainer● As I had mentioned in a previous video, I always ask for a retainer on any new project.● A retainer is typically an upfront initial payment, that is non-refundable and can rage from 20 – 50 percent of the project cost.● You should state in the agreement that you will require a retainer, how much it is, and that the project can start as soon as they sign your agreement and provide you with the retainer.● You should also state that the retainer will be applied towards the project cost and is not an extra fee.
  • 14. IP and Ownership● IP issues can a factor that can complicate a project. Watch your back.● While I usually do not claim ownership on most projects, I always maintain the right to re-leverage knowledge and skills acquired while working on any given project on future projects.● The main reason for this is that you cant constantly be re-inventing the wheel as a developer.● I also usually state that I will not use code or techniques derived on a project with a direct competitor.
  • 15. Signatures and Dates● You should have some kind of clause at the end of the agreement to the effect that “all the parties involved have read, understood and wish to enter into the agreement”.● Make sure there is a spot for your signature and the clients as well as a spot for the current date.
  • 16. The Agreement is Signed...Now What?● In upcoming episodes well be discussing:● Strategies for dealing with challenging clients
  • 17. ● If you are interested in learning more about how to develop mobile Apps, visit and get instant access to over 30 free videos today!● Follow me on twitter at @appbuildertv