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Contracts and getting paid

What it is

A contract turns the scope into something both sides have agreed, and states when money moves: a deposit before the work starts, milestone payments during it, and a defined point at which the final invoice is due. Getting paid is then a process with dates, reminders and an escalation path, not an awkward conversation that happens once.

Why it matters

Cash is the constraint that kills freelance businesses, not profit. A profitable project that pays ninety days after completion funds nothing in the meantime, and a single unpaid invoice of a few weeks’ work can end a small practice. The mitigations are unglamorous and completely standard: money up front, payments tied to deliveries, a written scope, and a follow-up rhythm that starts before the due date. Contract terms also protect both sides — they make the boundary explicit, which is how a good client relationship stays good.

Core ideas

Take a deposit, and say what it is for

The deposit is standard practice, not a signal of distrust, and it converts a hypothetical client into a committed one. Describe it as reserving time in the schedule.

30% on signature      reserves the start date
40% at design sign-off
30% on delivery and acceptance, due 14 days from invoice
Schedule change        start date moves if the deposit has not arrived

Note the last line: the schedule, not the relationship, is what the deposit affects.

Tie payments to deliverables, not to dates

Dates slip for reasons outside your control; deliverables do not. Each payment then has an unambiguous trigger both sides can check.

Define acceptance, and what happens if nobody responds

The commonest way to lose the final payment is an acceptance clause with no clock. Add a stated period within which the client must raise issues, after which the work is deemed accepted.

Acceptance  client has 10 working days from delivery to list defects
            in writing; after that the work is accepted and the
            final invoice is due

Invoice immediately and follow up on a schedule

Send the invoice the day the milestone is reached, with the contract reference and the due date. Then a fixed rhythm: a reminder a few days before the due date, one on the day, one a week later, then a call. Written and impersonal beats an annoyed message at day 60.

Escalate proportionally, and stop work if necessary

The contract should state that work may be paused on unpaid invoices. Using it is uncomfortable and it is the clause that prevents most disputes, because the client’s finance process suddenly becomes a priority.

Keep the paper trail

The scope, the change requests, the approvals and the invoices in one place. Almost every dispute is settled by knowing what was agreed and when.

Practice

Draft the payment terms for one project

Write the deposit, the milestones, the acceptance period and the due date for a real or hypothetical project.

Done when: every payment has an unambiguous trigger, and the acceptance clause includes a period after which the work is deemed accepted.

Run the follow-up rhythm on one invoice

Take an invoice and write the four dates on which you will follow up, then do it.

Done when: the invoice is paid or you have run the whole rhythm — and you have noted the day it was actually settled for your own records.

Common mistakes

  • No deposit — the schedule is committed with nothing reserved and no commitment from the client; fix: take a deposit and describe it as reserving the slot.
  • Payments tied to dates rather than deliverables — a slipped date moves the payment and the argument; fix: trigger each payment on a delivery.
  • No acceptance clock — feedback arrives indefinitely and the final invoice never becomes due; fix: a stated period after which work is accepted.
  • Following up only when annoyed — the process depends on your mood; fix: set a written follow-up schedule and keep it impersonal.
  • No pause clause — the only remaining leverage is to stop suddenly and badly; fix: agree in advance that work pauses on unpaid invoices.

Go deeper

Worked examples

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