Why Your DIY Contract Won’t Save You

Let’s be honest- when you’re first starting out as a freelancer, contracts feel like an afterthought.

You’re focused on landing clients, delivering work, and keeping the lights on.

So you piece together a contract from free templates, borrow clauses from a friend’s agency agreement, and toss in a few “hereby” and “notwithstanding” phrases to make it sound official.

For a while, it works. Clients sign without question. Projects move forward. You might even pat yourself on the back for saving the $2,000 you’d have spent on a lawyer.

Then, reality hits.

A client ghosts you after you’ve delivered the work, claiming they “never agreed” to the payment terms.

A scope dispute escalates into a shouting match because the contract vaguely mentions “revisions” but never defines how many.

Or worse - you get slapped with a lawsuit over a clause you copied from a random blog post, only to discover it’s unenforceable in your state.

Suddenly, that DIY contract you thought was protecting you? It’s about as useful as a screen door on a submarine.

The Freelancer-to-Agency Trap

Here’s what I’ve learned from working with hundreds of freelancers and small agencies: the contract that got you through 5K projects will crumble under 50K deals.

Why?

When you’re freelancing, clients often tolerate ambiguity. But as you scale to larger retainers and complex deliverables, the stakes skyrocket.

Clients hire lawyers. They scrutinize every word. And if your contract is full of unenforceable fluff or loopholes, you’ll lose leverage fast.

And I have even seen cases where company owners have written clauses like “Client forfeits all rights to terminate the project after the initial payment.” 

If that clause is brought in front of a court, that court will throw out the clause calling it "unconscionable"

Why Most DIY Contracts Fail

You can’t just slap together clauses and hope they stick. Courts care about fairness, clarity, and compliance with local laws.

Here’s where freelancers and agencies go wrong:

❌ The “No Refunds, Ever” BS

“Client can never request a refund under any circumstances.”

If you don’t deliver what’s promised, courts will side with the client - no matter what your contract says.

❌ The “We’re Never Liable” Delusion

“Agency is not responsible for delays, errors, or damages.”

You can’t waive liability for gross negligence. If you miss a deadline because you took on too much work, you’re still accountable.

❌ The “Scope Creep? Not Our Problem” Myth

“Additional requests will incur fees at the agency’s discretion.”

Without defining what counts as “additional,” clients (and judges) will interpret it in their favor.

How to Build a Contract That Actually Protects You

The best way to go about it is by putting clarity and fairness first. So here's how I suggest you do it.

1. Define “Done” Like Your Business Depends on It (Because It Does)

For freelancers: Include a deliverables checklist with deadlines. Example:

“Homepage design finalized after 3 rounds of revisions. Final files delivered in Figma and PDF formats by [date].”

For agencies: Add a scope of work section that lists excluded services. Example:

“This agreement does not include copywriting, SEO optimization, or hosting setup.”

2. Kill Ambiguity with Payment Triggers

Instead of “payment due upon completion,” tie payments to milestones:

• 30% deposit to start

• 40% after client approves wireframes

• 30% before the final files are released

3. Prepare for the Worst-Case Scenario

Termination rights: “Either party may terminate with 14 days’ notice. Client pays for work completed up to termination date.”

Dispute resolution: “All disputes resolved through mediation in [Your State] before pursuing litigation.”

Liability cap: “Agency’s total liability limited to fees paid under this agreement.”

Actionable Checklist for Your Next Contract

To sum it up - here's the 3 main things that I suggest you could do.

1. Delete unenforceable clauses (like “no refunds ever”).

2. Add a “Scope of Work” appendix that details deliverables, deadlines, and exclusions.

3. Include a “Change Order” process for out-of-scope requests (e.g., client pays 50% upfront for new work).

4. Run it by a lawyer who specializes in your industry - even once.

The Bottom Line

Your contract isn’t just there for formality, you can use it as a negotiation tool, a risk-management plan, and a credibility signal rolled into one.

If you’re scaling from freelancer to agency, invest in a contract that grows with you.

Because when a client pushes back, you don’t want to be stuck explaining why your “legal-sounding” Google template won’t hold up in court.