Case Study: Why You Need a Contract - For Every Project

When I first started consulting, I thought contracts were just for the big stuff. You know, the $10k projects, the year-long deals.

But after a few hard lessons and conversations with dozens of freelancers and founders, I realized something important:

It’s not just about the price - it’s about the time you’re tied up.

The Call with Ibrahim

Just recently, I had a call with Ibrahim, a video editor just starting out. He asked me a question I’ve heard at least 40 times:

“When do I need a contract?”

My short answer? Always.

But here’s why.

I’ve seen too many creatives get stuck on long projects without a good contract to protect them. Especially in tech.

Take app development, for example. A “six-month project” can easily drag on for 1.2 years without a contract that sets boundaries. And all that extra time? No extra pay.

So, when Ibrahim asked, I didn’t just give him a generic answer. I broke down the reasons:

Why Contracts Matter for Every Project

1. How Long Are You Tied to This Project?

If a project’s over a month, get a contract. Why? Because timelines shift. Priorities change.

What started as a four-week gig can turn into a three-month marathon. And without a contract, you’re stuck wasting time, missing other opportunities, and scrambling to renegotiate.

2. What’s the Project Worth?

I tell people to get a custom contract for anything over $5,000. If things go south, you stand to lose a lot.

But even if it’s a $500 project, the contract matters. Why? Because it’s not just about the money - it’s about protecting your work and not getting dragged into extra hours for free.

The Trap of Relying on Templates

When you’re just starting out, templates feel like an easy solution. And I get it. Templates save time. They’re quick, simple, and seem good enough.

But here’s the problem: Templates carry a lot of dangerous assumptions.

-> They assume you’ll get paid for the work you did if the client pulls the plug halfway through.

-> They assume the client will hand over materials on time, every time.

But assumptions can sink you if things don’t go as planned. That’s why you need a good contract - one that spells out expectations clearly and gives you a way out when things change.

The Lesson

Understand what’s behind those template clauses. Learn what they mean. And if you’re not sure, get help.

So if you’re just getting started, or you’ve already hit a few bumps, here’s what I want you to remember:

• Get a contract for every project, no matter how small.

• Customize it for anything long-term or over $5,000.

• Know what each clause means, and don’t rely on assumptions.

Here's what Ibrahim had to say after our call:

A good contract protects your time, your money, and your work. And that’s not just about being cautious, you are preparing yourself up for success.

If you’re not confident in your contract or need someone to review it, reply "CONTRACT".

Let’s make sure you’re covered, so you can focus on doing what you do best—without the worry.