What are the best practices for managing contracts as a self-employed consultant?

1 Define your scope

One of the most important aspects of a contract is the scope of work, which defines what you will do, how you will do it, and when you will do it. A clear and detailed scope can help you avoid scope creep, misunderstandings, and unrealistic expectations. You should also specify the deliverables, milestones, and acceptance criteria for your work, as well as any assumptions, limitations, and exclusions. A well-defined scope can also help you estimate your time, resources, and costs more accurately.

2 Negotiate your terms

Another essential aspect of a contract is the terms and conditions, which define the rights and obligations of both parties, as well as the remedies and consequences in case of breach. You should negotiate the terms that suit your needs and preferences, such as payment terms, invoicing methods, cancellation policies, confidentiality clauses, intellectual property rights, dispute resolution mechanisms, and liability limitations. You should also review the terms carefully and seek legal advice if necessary before signing the contract.

3 Track your progress

Once you have signed the contract, you should track your progress and performance regularly and communicate with your client frequently. You should use tools and methods that help you monitor your tasks, deadlines, budgets, and quality standards. You should also document your work and keep records of your communications, feedback, and changes. Tracking your progress can help you stay on track, identify issues, and report your results.

4 Manage your changes

Sometimes, you or your client may need to change some aspects of the contract, such as the scope, the schedule, the budget, or the terms. You should manage these changes carefully and follow a formal change management process. You should request or approve changes in writing, specify the impact and implications of the changes, and update the contract accordingly. You should also avoid making too many or too frequent changes that may affect your quality or reputation.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?