A client agreement is an agreement between your business and your clients. We call it a “master” client agreement, because you use the same agreement, changing only the client-specific details, for each new client.

To avoid disputes down the track, it is important to address several issues in your client agreement, including:

  • What services are being provided;
  • What fees you will be charging;
  • When you expect payment for your services;
  • How you or your client can terminate the agreement;
  • What intellectual property is being transferred; and
  • What your business is not liable for.

The focus of this article is the “services, fees and invoicing” clause.

Services

In drafting the agreement, your contract lawyer should clearly set out in the ‘services’ section which services your business provides, and what services it does not. For example, if you have a web design business which does design work only, you should detail what design services are provided, and the time and phases for each step, and you also need to make clear that you are providing only web design services, but not any ongoing hosting or maintenance services. In this clause, you should also indicate that third party service providers may be used, and any third party service provider that is not your direct contractor, will be the responsibility of the client.

Fees and invoicing

It is important that your clients know how much they are paying for your services. Some businesses charge fixed-fees and require payment upfront – requesting payment upfront is often a good way to ensure that you will be paid, and saves you from chasing payment later. On the other hand, some businesses charge hourly rates, and bill their clients at regular intervals. If you invoice your clients regularly, your client agreement should set out the payment terms i.e. how many days your clients are given to pay each invoice. To protect your business, you can also insert terms, which allow you to do any of the following, if a client does not comply with the payment terms:

  • Terminate all services immediately;
  • Charge interest on the unpaid amounts; and
  • Engage debt collection services.

Conclusion

Client agreements are important legal documents, as they create a legally binding relationship between your business and your clients. It is important that the client agreement is clear on what services are being provided, and what and how clients are expected to pay for your services. The scope of services and payments are generally the most common disputes between a business and a client. Having a well drafted “services, fees and invoicing” clause could prevent a dispute down the track.

If you require any assistance with the preparation of a master client agreement, or if you have an existing one you’d like reviewed, contact LegalVision today. Our specialist business and contract lawyers would be happy to help!

About LegalVision: LegalVision is a tech-driven, full-service commercial law firm that uses technology to deliver a faster, better quality and more cost-effective client experience.

Get a Free Quote Now

If you would like to receive a free fixed-fee quote or get in touch with our team, fill out the form below.

  • We will be in touch shortly with a quote. By submitting this form, you agree to receive emails from LegalVision and can unsubscribe at any time. See our full Privacy Policy.
  • This field is for validation purposes and should be left unchanged.

Privacy Policy Snapshot

We collect and store information about you. Let us explain why we do this.

What information do you collect?

We collect a range of data about you, including your contact details, legal issues and data on how you use our website.

How do you collect information?

We collect information over the phone, by email and through our website.

What do you do with this information?

We store and use your information to deliver you better legal services. This mostly involves communicating with you, marketing to you and occasionally sharing your information with our partners.

How do I contact you?

You can always see what data you’ve stored with us.

Questions, comments or complaints? Reach out on 1300 544 755 or email us at info@legalvision.com.au

View Privacy Policy