When you run your own business, there are a million things to manage—from invoicing and billing to marketing and client management, being a business owner involves a never-ending to-do list of administrative tasks—all on top of your actual design work.

But when it comes to compiling all of your paperwork, there’s one step you should never skip: your client contract. While contracts may seem tedious and intimidating, they’re actually the cornerstone of your business.

Your contract is the binding agreement between you and your client. It’s what guides your business dealings and ensures that you both get exactly what you want out of working together. By putting pen to paper and defining the terms of the project, from payment to timing to the scope of work, it sets both you and your client up for success.

Set expectations with your client, legally protect your biz, and make sure you get paid what you’re owed by putting all the right details in writing.

Outline the Scope of Work

Your contract defines the terms of your agreement with clients, so the scope of work is one of the most important pieces of the puzzle. By defining what services you will deliver, how much of your time, and the number of resources that are earmarked for the client, you can ensure that you’re meeting your end of the bargain (and that they’re not getting more than they’re paying for!).

Be sure the scope of work is simple and clear in your contract. State exactly what deliverables the client will receive—and be specific! Don’t just use general phrases like “Design for [insert room].” Are you sourcing and ordering all the furniture or finishes? Are you handling the contractor or structural engineer relationships? Are you playing a role in project management? Be sure to get down all the details in the contract so nothing about your agreement is ever called into question.

Lock-In Pricing & Rates

Your pricing and rates are the crux of your biz, so it’s vital that they’re clearly articulated in your legal contracts. And think beyond just the total amount that’s due—think about payment milestones and repayment timeframes, too. Consider adding a project deposit that’s due right after the contract is signed. This lets your client reserve your time and is a great approach especially for projects with a longer time horizon, so you don’t have to wait months and months to get paid.

Along with your rates and payments, define exactly how long your client has to pay you once you send them an invoice. And don’t forget to include a range of payment options—all written out in the contract—because giving several options often means you get money in your pocket, faster.

Define Timing

For design and renovation projects the “t” word is often a dreaded one: timing. While timing can fluctuate depending on countless factors, from unexpected hiccups during a renovation to vendor delays, be sure to outline the project timeline—at least loosely—in your contract.

Sketch out how long each phase of the project will take and determine a target delivery date. Though this may shift as issues are uncovered and the project evolves, it helps set expectations with the client and keeps things on track.

Protect Both Parties

Your contract gives you the chance to protect your own interests, and also gives your client the chance to protect theirs. Your contract should detail when and how the contract can be terminated, giving the client a reasonable opportunity to end your agreement—but also ensuring you get compensated for work already done. You should also outline what happens if the terms aren’t met. For example, if your client doesn’t pay their invoice on time, what happens? Be sure to think through every scenario and include language in your contrat that helps resolve any problems before they happen.

Overwhelmed with contracts and not sure where to start? Our Interior Design, Residential, Commercial, and VA contract templates are the perfect foundation for your business contracts.