Do Freelancers Need a Contract? Yes — Here's What to Have in Place Before Starting Work

Working with a new client is different from working with an established one. You have no payment history to rely on, no precedent for how disputes get resolved, and no shared context about how you work. Your contract does more work in a new client relationship than any other commercial document — and the protections you include at the start will determine what happens if anything goes wrong.

This guide covers what to lock down before you start a project with any new client, whether you are sending your own contract or reviewing one they have supplied.

Why New Clients Need Stronger Contracts

With a long-standing client, you have built up a working relationship: you know how they communicate, you have an established payment history, and you have probably resolved a few minor disputes informally. That relationship context means a less detailed contract carries lower risk.

With a new client, none of that exists. If a dispute arises — about scope, payment, IP, or quality — the contract is your only reference point. A vague scope clause that you might manage informally with a trusted client becomes a serious problem with someone you have just met commercially.

The practical implication: your contracts with new clients should be more specific, not less. More detailed scope descriptions, clearer payment triggers, explicit change request procedures, and stronger protections against early termination without compensation.

Scope and Deliverables

The scope of work clause is the foundation of any project contract. With a new client, being specific about scope is more important than with any other relationship.

What to specify:

• Exactly what you are delivering: format, volume, specification
• What is explicitly excluded (work that falls outside the scope)
• Delivery timeline: milestones, deadlines, and any client-dependency triggers (e.g., “timeline assumes client provides assets by X date”)
• Number of revision rounds included and what constitutes a revision versus a new scope item
• What constitutes final delivery and how acceptance is confirmed

If the client's brief changes between proposal and contract, update the scope description before signing. Do not start work on the assumption that you and the client are aligned — confirm alignment in the written document.

Payment Protection for New Relationships

Payment disputes are the most common problem in new client relationships. Protecting yourself starts at the contract stage.

Deposit. A 25–50% upfront deposit is standard and widely accepted. It demonstrates the client is committed, covers your initial time investment, and provides partial protection if the project is cancelled. Read our guide on payment milestone clauses for how to structure payment across a project.

Milestone payments. For projects over three to four weeks, milestone-based payment is safer than end-of-project payment. Tie payment triggers to specific deliverable dates or submission of defined work products — not to the client's subjective “satisfaction”.

Payment period. Net-30 is the standard benchmark. With a new client, push back on anything longer. Net-60 or Net-90 terms are more common from larger organisations, but they create real cash flow pressure, especially early in a relationship.

Late payment clause. Include an explicit penalty for overdue invoices: daily interest at 8% above base rate (UK statutory rate) or a fixed weekly fee. Even if you never enforce it, the clause creates a commercial incentive for timely payment.

IP Ownership: Establish This First

IP ownership is the most consequential clause for any freelancer. With a new client, establish it explicitly at the outset — not after work has started. Ambiguity about IP ownership becomes very hard to resolve once deliverables exist.

The key decisions:

Assignment vs licence. An IP assignment transfers ownership of the work to the client permanently. A licence lets the client use the work while you retain ownership. For most freelance projects, clients expect an assignment of the final deliverable; the question is how broadly the assignment is drawn.

Pre-existing IP. Any tools, frameworks, templates, or methodologies you bring to the project should be explicitly excluded from any IP assignment. Without this carve-out, a broadly drafted assignment clause can transfer ownership of your standard working practices to the client.

Portfolio rights. If you want to include this project in your portfolio, confirm this right in the contract. Some client contracts include confidentiality provisions that would prevent you from showing your work publicly.

NDA and Confidentiality

Most client projects involve access to confidential information: business strategies, unreleased products, client lists, financial data. A confidentiality clause protects the client's information, which is reasonable. What to check:

• Does the obligation cover only genuinely confidential information, or all information received from the client?
• How long does the obligation last? Two to five years is standard; indefinite is hard to comply with over time.
• Are there carve-outs for information you already know, information that becomes public independently, or information you develop separately?
• Does the clause prevent you from working with the client's competitors? If so, negotiate it as a separate, time-limited non-compete provision.

Change Requests and Scope Creep Protection

Scope creep is more common with new clients than with established ones. Without a track record, new clients may not yet understand what falls within and outside your scope. A clear change request clause is essential protection.

The clause should specify:

• That any change to scope must be agreed in writing before work begins
• How changes are requested, agreed, and documented
• That changes may affect both the timeline and the fee
• What constitutes a change versus a minor revision within agreed scope

For new clients, be particularly firm about enforcing the change request process. Informally accepting scope additions to be “helpful” at the start of a new relationship sets a precedent that is difficult to reverse.

Termination: Protecting Your Time Investment

Termination provisions are particularly important with new clients because you cannot predict how the relationship will develop. The key provisions to check:

Termination for convenience notice period. A new client should give reasonable notice before terminating — at minimum 14 days, and ideally 30 days for any project over a few weeks. Short notice or immediate termination rights expose you to significant time investment with no completion payment.

Payment on early termination. Your contract should specify that you are paid for all work completed and reasonably committed to up to the date of termination. Without this, a client can terminate after three weeks of work and refuse to pay for anything because you did not deliver the final product.

Kill fee. For creative projects where you invest significant time before delivery, a kill fee — a percentage of the total fee payable if the client cancels — is reasonable and worth including with new clients. Twenty-five to fifty percent of the remaining contract value is a standard range.

Red Flags in New Client Contracts

When reviewing a contract a new client has sent you, watch for:

• No upfront deposit or milestone payments — full payment only on final delivery
• Vague scope with no change request process
• Broad IP assignment with no pre-existing IP carve-out
• Payment terms of Net-45 or longer without justification
• Unilateral termination with no kill fee or compensation for completed work
• Unlimited indemnification without a liability cap
• Confidentiality provisions that extend to preventing you from working in the same sector

None of these are automatically deal-breakers, but each one represents a risk you should consciously accept — or negotiate out of the contract — before starting work. Review our guide on red flags in freelance contracts for a fuller list of warning signs.

New Client Contract Checklist

Before starting work with a new client, confirm:

• Scope is described specifically with a clear change request process
• A deposit or upfront payment is confirmed before work begins
• Payment schedule is milestone-based or tied to defined delivery events
• Payment period is Net-30 or shorter (push back on Net-45+)
• A late payment clause is included with a defined interest rate or penalty
• IP assignment is limited to project deliverables, with pre-existing IP excluded
• Portfolio use right is confirmed in writing
• Confidentiality obligation has a defined duration and does not prevent competitor work
• Termination includes adequate notice and payment for completed work
• Liability is capped and indemnification is mutual
• Governing law and dispute resolution are specified

FAQ

Should I ask for a deposit from a new freelance client?

Yes. A 25–50% deposit before starting work is reasonable and widely accepted, especially with new clients. It demonstrates commercial seriousness, covers your initial time investment, and protects you if the project is cancelled early. A client who refuses any deposit is a notable risk.

What if a new client does not want a contract?

This is a significant red flag. A client who refuses any written agreement leaves you with no legal basis to enforce payment or protect your IP. At minimum, confirm scope, fee, and payment terms in a written email before starting any substantive work.

How detailed should the scope of work be for a new client?

More detailed than you think you need. With no established relationship to fall back on, the scope is your only reference point for disputes. Specify exactly what you are delivering, what is excluded, how many revisions are included, and what constitutes final acceptance.

Is it normal to send my own contract to a new client?

Yes. Using your own contract is normal for freelancers with established practices. Some clients will prefer to use their own terms; in that case, review theirs carefully before accepting. Either approach can work — what matters is that the agreed terms are written down before you start.

What payment terms should I use with a new client?

Milestone-based payment: 25–50% upfront, remainder on delivery or at defined milestones. Net-30 payment period from invoice is a reasonable standard. Push back on longer terms until the relationship is established and you have a payment history with the client.

BeforeYouSign is an AI-powered educational tool. It does not provide legal advice. Always consult a qualified legal professional before making binding legal decisions.