Contract Clauses: What to Look for When Hiring a Designer

When you’re hiring a designer (or any creative professional, really), it’s tempting to skip over the legal mumbo jumbo and dive straight into the exciting part – the design! But hold on a second. Those contract clauses? They’re not just small print. They’re the backbone of a smooth working relationship and will help prevent your design project from spiralling into chaos. In this post, we’re going to break down the key contract clauses you should be aware of when hiring a designer, so you can avoid common pitfalls and ensure everything runs smoothly.

Ownership of Work

Let’s start with the big one: ownership. You’d think this would be clear-cut, but it can sometimes be a grey area. When you hire a designer, you want to make sure you’re clear on who owns the final design work once it’s completed.

Typically, designers retain the copyright to their work (unless the contract states otherwise), but you’ll usually be granted a license to use the work for certain purposes, such as marketing or promotion. However, it’s crucial to ensure the contract clearly states whether you’re getting exclusive or non-exclusive rights to use the design. If you’re launching a product, for example, you’ll want to secure exclusive rights to avoid your design popping up on a competitor’s website a month later.

Make sure the contract specifies:

– The scope of usage (where and how you can use the work).
– Whether the rights are exclusive or non-exclusive.
– Any limitations, such as geographical restrictions or timeframes.

Payment Terms

It’s easy to overlook, but payment terms are a big deal. A designer might expect an upfront deposit before starting the work, with the remainder due once the work is completed. This ensures both parties are committed and protects the designer from working for free (not ideal!).

When reviewing the payment clauses, keep an eye on:

– The payment schedule (how much is due upfront, and when the balance is due).
– Late fees for missed payments (it happens – but best to be clear on what happens if payments are delayed).
– Any clauses about extra costs if the project goes over the agreed scope (designs can evolve, and you might need more tweaks, so it’s best to agree in advance how extra work will be charged).

A simple clause like “final payment due upon completion” might sound fair, but it’s a good idea to break down what “completion” actually means. That way, there’s no confusion about whether you’ll pay for a “draft” or the fully polished, finished product.

Project Timelines

Deadlines are crucial, but they’re also a source of stress for many projects. When you’re hiring a designer, it’s essential to set realistic timelines that work for both sides.

The contract should cover:

– The timeline for the project from start to finish.
– A clear milestone schedule, including when you’ll receive drafts and when feedback is expected.
– Penalties or consequences if the designer misses a deadline or you do. (We’re not saying you’ll be late, but hey – life happens.)

This is also where communication becomes key. The more specific you are about your expectations and deadlines, the less chance there is of misunderstandings. A clause saying something like, “First draft due in 14 days, with final revisions completed within 7 days of receiving feedback” will give both parties a clear understanding of the project timeline.

Revisions

We all know that design isn’t a “one and done” situation. Feedback, revisions, and changes are part of the process. But how many revisions are included in your agreement?

A clear clause on revisions can save you from the dreaded back-and-forth that can eat into your budget and timeline. Here’s what to clarify:

– How many revisions are included in the price? (A good rule of thumb is two or three rounds of revisions, but this can vary.)
– What happens if you exceed the revision limit? Will there be additional costs for extra revisions?
– Feedback deadlines: How quickly do you need to provide feedback after receiving each draft? Delays here can also affect the timeline.

Setting these expectations up front helps both parties stay on track and prevents the project from feeling like a never-ending design cycle.

Termination Clauses

Sometimes, despite best efforts, things just don’t work out. Maybe the design isn’t quite what you had in mind, or life (or business) throws a curveball, and the project needs to be paused or cancelled.

A solid contract should have a termination clause that covers what happens if either party wants to end the agreement early. It should address:

– How and when the contract can be terminated (e.g., with written notice).
– Whether any fees or compensation are due if the contract is cancelled (for example, if you’ve already paid for work completed).
– What happens to the work completed so far – do you get to keep the designs you’ve paid for?

Make sure that this clause is clear, so you’re not left with a hefty bill for unfinished work.

Liability and Indemnity

Let’s face it – things go wrong sometimes. Whether it’s a copyright issue or an accidental breach of intellectual property rights, you’ll want to know who’s responsible if things go pear-shaped.

A good contract should include:

– Liability clauses that specify who’s responsible for what. For example, if you use the design in a way that violates someone else’s trademark, you should be clear on who’s responsible.
– Indemnity clauses that cover what happens if the designer’s work causes any legal issues (e.g., claims of copyright infringement). This ensures that both parties are protected in the event of a dispute.

Confidentiality Clauses

If your design is part of a major new product launch or a rebranding, confidentiality might be essential. A confidentiality clause (or NDA) ensures that the designer won’t spill the beans about your project before you’re ready to go public.

This clause should cover:

– What information is confidential (design ideas, business strategies, etc.).
– The duration of confidentiality (how long the designer must keep the information secret after the project ends).
– Any penalties or consequences if the designer breaches confidentiality.

Make sure that this clause is clear, so you’re not left with a hefty bill for unfinished work.

Wrapping It Up

Hiring a designer isn’t just about finding someone who can create beautiful work – it’s about ensuring that the entire process is smooth, transparent, and protects both parties. By focusing on these essential contract clauses, you can avoid misunderstandings and create a clear path toward success.

And remember, a good designer will be open to discussing these points and ensuring the contract reflects a fair and equitable agreement. So, don’t be afraid to ask questions and make sure everything is crystal clear. After all, a solid contract is the best foundation for great design!

At PHd Design, we’ve been working with clients for over 30 years, and we understand how important these details are for building lasting, productive relationships. If you’re ready to discuss your design needs (and ensure your contract covers all the bases), give us a call – we’d be happy to help!

Have a question or want to learn more? Reach out to us at PHd Design and let’s start building the brand that’s going to take your business to the next level.

Need Help with Your Design Contract?

If you’re ready to kickstart your next design project, PHd Design can help you navigate the complexities of contract clauses, ensuring everything’s locked down so you can focus on what really matters – the design itself. From ownership rights to payment terms, we’ve got the experience to make sure your project runs smoothly and successfully.

Not quite ready to dive into a new project? Stay in the loop with our fortnightly newsletter, filled with expert advice, design trends, and behind-the-scenes insights from PHd Design. Click here to sign up.