Negotiate contracts effectively: Essential tips for Freelancers & Self-Employed (FSE) professionals

As a Freelancer & Self-Employed (FSE) professional here in Singapore, one key skill to safeguard yourself will be to learn about setting up contracts. A well-structured contract is not just a formal agreement; it serves as a clear guideline for your professional engagements, ensuring clarity, mutual understanding, and protection for both parties involved.Whether you’re a creative professional, coach, consultant, or a tech freelancer, understanding and confidently handling negotiations that have legal implications ensure that your interests are protected.

Download this template to shape better contracting norms and aid in the event of payment disputes.

Understand the basics
Whether it’s payment invoices, a non-disclosure agreement (NDA), or licence agreement among other forms of contracts, at the core of these documentations are terms that define the scope, duration, and nature of the work. As an FSE, it's crucial to understand these terms to avoid potential conflicts and ensure that both parties have a clear expectation.

A robust contract typically encompasses several key terms:

Define scope and duration: Clearly outline the services or deliverables and project timeline to manage expectations and prevent scope creep.

Set clear payment terms: Detail payment schedules, rates, and methods to secure your financial interests and ensure timely compensation.

Include protection clauses: Incorporate terms for copyright, termination, and dispute resolution to safeguard your legal rights and provide clear guidelines for handling potential issues.

As an NTUC U FSE member, learn more about how we are committed to providing you with the proper support should you need to navigate legal conflicts or have queries.

Negotiate fair terms
Negotiation is not just about getting what you want. It’s also about reaching a mutual understanding where both parties feel valued and respected. Your goal is to end up with a contract that is fair, clear, and beneficial to both sides.

Let’s say you are a creative commissioned to create a logo and branding materials for a brand. The contract you enter into with the owner should specify the following:

✔ Specify usage rights: Clearly define how and where the client can use your work (e.g., logo usage on menus, website).

✔ Clarify exclusivity: State if the designs are exclusive to the client or if you can reuse elements in other projects.

✔ Outline transfer of rights: Detail what rights are transferred to the client and any you retain (e.g., portfolio use).

✔ Set duration of use: If relevant, include the time period for which the rights are granted.

✔ Include credit terms: Agree on how you will be credited for your work, or if this is waived with a fee

Navigate copyright and intellectual property
For creative professionals, including graphic designers and content creators, as well as educators, coaches, and instructors crafting lesson materials and curriculum, understanding copyright and intellectual property rights are crucial aspects within a contract. It's vital to understand how your work will be used and what rights you retain or transfer.

Invest time in learning about copyright laws as they apply to your work. Ensure that the contract clearly states how your work can be used, any limitations on usage, and whether you retain any rights after the project is completed.

Prepare for contract discrepancies
Occasionally, discrepancies or misunderstandings can occur in contracts. Being prepared to address these diplomatically is important for maintaining a good client relationship and ensuring your rights are upheld.

Set up a process for reviewing contracts thoroughly. If discrepancies arise, approach them with a mindset geared towards finding solutions rather than assigning blame. It’s often helpful to have a lawyer review the contract, especially for more significant projects

Already an NTUC member? Reach out to us through VICPA or NICA to address unfair contractual terms and work-related disputes.

Understanding and skillfully negotiating contracts is empowering for FSEs. It leads to more secure professional relationships and ensures that your work and rights are respected. Effective negotiation leads to contracts that are not only legally sound but also lay the foundation for successful, ongoing business relationships.