Create Your Freelance Contract: Starter Guide

Why Your Contract Is Your Most Important Protection

Michigan has no Freelance Worker Protection Act. In the absence of state-level freelancer protection legislation, your written contract is your primary — and often only — legal protection when a client relationship goes wrong. A clear, complete contract prevents most disputes from escalating and gives you a strong foundation if a dispute reaches small claims court.

Essential Clauses for Michigan Freelance Contracts

Scope of work: Describe specific deliverables, formats, and what is explicitly excluded. Vague scope descriptions are the leading cause of scope creep disputes.

Payment terms: Total amount, deposit requirement (FHR recommends 25-50% upfront for new clients), payment schedule tied to milestones, and accepted payment methods. Specify due date — Net 14 or Net 21 is reasonable. Net 60 is not.

Late payment policy: Specify the interest rate on overdue invoices. Michigan law allows reasonable late fees specified in the contract. FHR recommends 1.5% per month on overdue balances.

Revision policy: State the number of included revision rounds explicitly and your rate for additional rounds. “Unlimited revisions” is a scope and profitability trap.

Kill fee: If a client cancels after work has begun, you are owed compensation for work completed. A kill fee of 25-50% of the remaining project value is standard.

Intellectual property: State that all rights transfer to the client upon receipt of full payment. Until final payment, you retain ownership. This is your primary leverage for non-payment situations.

Limitation of liability: Cap your liability for indirect or consequential damages to the total project value. Without this clause, a client could theoretically claim damages far exceeding what you were paid.

Dispute resolution: Specify Michigan law as governing law and Wayne County as jurisdiction. This prevents clients from dragging you into their home jurisdiction for disputes.

Reviewing Client-Provided Contracts

When a client provides their own contract template, read it carefully before signing. Watch for:

• Unlimited revision language
• Broad IP assignments that include your tools, methodologies, or pre-existing work
• Non-compete clauses that restrict your ability to work in your field
• Payment terms beyond Net 30
• Indemnification clauses that make you responsible for the client's legal costs in unrelated disputes
• Unilateral termination clauses with no kill fee

When to Have an Attorney Review Your Contract

FHR recommends having any contract you use regularly reviewed by a Michigan attorney at least once. The upfront cost of a contract review ($150-400 typically) is far less than the cost of a poorly structured agreement in a dispute. FHR's Vetted Consultant Directory includes attorneys familiar with freelance contracts in the Detroit area.

For a complete guide to payment enforcement when contracts are breached, see: Getting Paid on Time. For the full Michigan legal context, see FHR's blog post: Freelance Contracts and Liability in Michigan.