Freelance Project Manager Contract Template [Docs / DOCX]

Get the salary you deserve with a professional compensation proposal template that communicates your value, so you can confidently negotiate better pay in your creative career.

Freelance project management starts with a good contract that protects both parties and sets the tone.

In this guide, you'll learn how to create a contract that protects freelancers and clients. We’ll explain how to craft the project scope, set fair payment terms, and avoid misunderstandings.

Our approach is a plain language that sets expectations, safeguards your professional interests, and minimizes conflicts. Whether you’re an experienced freelancer or just starting, the right contract is your key to confident project management.

What is a Project Manager Contract?

It is a written agreement between the parties involved. It outlines each person’s roles, responsibilities, and expectations and is a roadmap for the project. It covers important details like task assignments, payment terms, deadlines, and conflict resolution. By setting these out upfront the contract prevents misunderstandings and ensures everyone is working towards the project.

Why do you need this contract?

Here are the key reasons why such a contract is crucial:

• A contract clearly defines the specific tasks and responsibilities of the project manager. It outlines the exact scope of work so there’s no confusion about what’s expected. It sets specific deadlines for project milestones so both parties are held accountable.
• As a legal document, it protects the freelancer and client by setting out agreed terms. In dispute resolution clauses it can shield the freelancer’s intellectual property rights. e.g. All original design concepts and creative work remain the property of [Freelancer Name] until full project payment is received.
• The contract sets out clear payment terms including schedules and rates so you get paid on time. It also minimizes financial risk by outlining what to do in case of project scope changes or unexpected delays.
• Written agreements build trust between freelancers and clients by clarifying each other’s commitments. It shows you’re professional and can help your reputation prompting more work in the future.
• By including specific provisions for dealing with conflicts, the contract provides a framework for managing disputes so if things go wrong during the project you’ll save time and resources.

Disadvantages of Not Using a Contract

Here are the downsides:

• Without a written agreement there’s no clear definition of project tasks and responsibilities. Clients may request more work than originally discussed due to this ambiguity.
• No contract means freelancers are exposed to payment issues. There is a possibility of financial trouble for freelancers without payment terms.

For example, 55 KNOTS, a company that solved this problem by using ManyRequest’s built-in Stripe integration to automate billing and invoicing. By setting up recurring monthly charges they have a predictable payment schedule and eliminate the uncertainty and financial risk that freelancers face.

This way they know exactly when they’ll get paid, and can plan their finances better and reduce the stress of chasing payments.

• Verbal agreements are open to interpretation and dispute resolution is impossible. Clients and freelancers can have different memories of what was agreed and it can damage professional relationships and waste time in pointless arguments.
• Without a written agreement, clients can ask for extra work or project changes without considering the impact on the freelancer’s time and rates. This means freelancers can work hours and hours without fair pay.
• Not using a contract can damage the freelancer’s professional reputation. It can look like they’re inexperienced or unprepared for potential clients and limit future work.
• Without a written contract, freelancers have no legal protection. If a client doesn’t pay or breaches the agreement the freelancer has almost no way to recover lost time, effort, or financial compensation.

Creating your Project Manager Contract 

As a comprehensive framework for successful project collaboration, this contract consists of the following key components:

• Contracting parties. The contract starts by listing all parties involved including names, addresses, and contact details. This ensures clear communication and legal responsibility from the get-go.
• Project description. A project snapshot includes the project goals, specific scope of work, and expected outcomes. This section creates a shared understanding of the project’s objectives.
• Tasks and responsibilities. Each party’s specific tasks and responsibilities are outlined, breaking down individual team members' roles and expectations. This clarity prevents misunderstandings and sets clear performance standards.
• Financing and payment terms. The contract outlines the payment structure including rates, schedules, and release criteria. These financial terms are transparent and protect both parties’ interests.
• Deadlines and milestones. Timelines for project phases and key milestones are set, so you can track progress and keep the project moving.
• Risk and change management. Procedures for identifying, assessing, and managing project risks are outlined. This helps you anticipate and mitigate potential issues throughout the project life.
• Warranties and liabilities. The contract defines warranty and liability for damages or non-performance. This protects both parties and sets expectations for project outcomes.
• Dispute resolution. Procedures for resolving conflicts are outlined to manage disagreements constructively.
• Contract length. The contract states its length and terms for extension or termination, so you have flexibility and boundaries.
• Governing law. The law that applies to the contract is specified, so you have a framework for legal interpretations or actions.

Contract Tips and Best Practices

Here’s what to do:

• Write an extremely detailed description of the project scope of work. Include task breakdowns, deliverables, and specific responsibilities to prevent misunderstandings and scope creep.
• Outline all financial details including rates, payment methods, and payment schedules. Consider a deposit or retainer to secure the project and protect the freelancer’s interests.

Here’s an example of a creative agency’s outline of financial terms for a full branding project.

FINANCIAL TERMS:

• Total Project Cost: $XX, XXX
• Retainer/Deposit: 40% ($X, XXX)
• Payment Schedule:
  
  • 40% upon concept approval
  • 20% on project completion
• Payment Method: Bank Transfer
• Late Fee: 1.5% monthly

• Set non-negotiable deadlines for each project milestone and overall completion. This manages expectations and holds both parties accountable.
• Create a termination clause that allows either party to terminate the agreement under certain circumstances, such as non-performance. Specify the notice period for contract termination.
• Clearly state intellectual property rights, usually stating the freelancer retains work until full payment. This protects the freelancer’s creative and professional interests.
• State the number of included revisions and fees for extra changes. This prevents scope creep and protects the freelancer from client abuse.
• Include clauses for dispute resolution, such as mediation or arbitration. This can save time and money if things go wrong during the project.
• Write the contract in plain English. Avoid legalese so both parties know what they’re committing to.
• Get the freelancer and client to sign the contract, so it’s legally binding. This is the most important part, it makes it enforceable and shows mutual agreement to the terms.

Contract Mistakes to Avoid

• Not defining the scope of work. Don’t use vague task descriptions that can lead to misunderstandings and scope creep. Write a detailed description of project goals, tasks, deliverables, and milestones so both parties are clear.
• Using vague language. Legalese creates confusion and misinterpretation. Write in plain English so both parties can understand, and avoid technical terms.
• Not considering intellectual property rights. Not specifying work ownership can lead to future disputes. Include clauses that state intellectual property rights and ownership on project completion and payment.
• Not including revision policy. Without revision limits, clients can request infinite changes. State the number of included revisions and fees for extra changes.
• Not including the termination clause. A missing termination clause makes it hard to get out of bad contracts. Include conditions under which either party can terminate the agreement with a notice period.
• Using generic templates. One size fits all templates miss project and client-specific details. You should customize contract templates to address the specific requirements of each project and client.
• Not getting legal advice. Drafting a contract without professional legal help can leave you exposed. Consider having a lawyer review the agreement to ensure you’re fully covered.
• Not including communication clauses. Not setting communication expectations can lead to misunderstandings and project delays. Include provisions for regular check-ins and progress updates.

You can read our client communication guide which explains why clear communication is key. This guide shows that clients and team members want transparency on project progress.

• Not getting both parties to sign the contract. An unsigned contract is not legally binding. Get both parties to sign and date the document before starting work to formalize the agreement.

How to Use Our Freelance Project Manager Contract Template

• Download the customizable contract template.
• Personalize the document to your business (Incorporate your business name, upload your logo, and include your contact details)
• Fill in the color-coded sections with your details and client details.
• Review every section thoroughly.
• Save the modified template in a digital file for future use.

Wrap up

Thanks for reading! Creating a freelance project manager contract doesn’t have to be hard. It’s all about protecting yourself, setting clear expectations, and trust with clients. Follow the tips above to avoid mistakes and be set for project success.

Want to make managing client projects even easier? 

ManyRequests can help you track requests, assign tasks, and keep communication simple. Their 14-day free trial lets you see how technology can simplify your workflow and help your agency grow. 

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