As a web designer developing websites for clients, you must have a robust set of terms and conditions to protect your commercial interests. Having a website developed is a major piece of work for both you and your client. As website development can take significant time, both parties must understand what they can expect from the other. Consequently, this is where the client agreement comes in. The client agreement can take many forms. For instance, you may have a proposal that outlines the services you will provide and attach your terms and conditions. Alternatively, you may have a schedule on the first page of your client agreement that you can amend for each client. This article will explore the key elements you must include in your terms and conditions document.
Services and Specifications
Whether it is in the proposal or in the schedule, your client agreement must clearly set out what services you will provide and what specifications the client is after. This should be as specific as possible.
You need to consider, with your client, what the website’s functionality will be. Consider factors such as whether:
- the client will use it to sell goods;
- the client will use it to sell services; and
- it is a marketplace.
Timeframes
A client will almost always ask a website developer when the website will be ready. It may determine when they can launch their business or other elements of their business operations.
Therefore, your client agreement must set out the timing for each stage and the final product. It should specify how quickly the client needs to respond to your reasonable requests and what time frames depend on the client’s input. You can also protect yourself by stating that you are not responsible for any missed deadlines due to the client’s failure to respond in a detailed or timely way.
Continue reading this article below the formAdditional Services
Many things can change throughout the process of web development. It is important that your terms and conditions outline the procedure for your clients to request a variation or additional services. You can choose whether to accept or reject the change and set the additional price. If you agree to provide additional services, you should sign a variation document with your client. It is generally easier to resolve disputes and enforce your rights when agreements are in writing and signed.
Price and Payment Terms
For any business, getting paid is one of the biggest concerns. Your terms and conditions need to clearly outline the price for your services, including any deposits you require.
It is also important that your terms and conditions address what will happen if the client fails to pay the price in accordance with the payment terms. For example, you may charge interest on any outstanding invoices after a set period and engage in debt collection services. You should also address what will happen to the services where a client has failed to pay, for example, that you will suspend providing the services.
Ongoing Maintenance and Technical Support
It is important to consider whether you will offer ongoing maintenance or support services after the website has been created for the client. If yes, this needs to be addressed as specifically as possible in the client agreement.
Intellectual Property
Intellectual property is very important for website developers. You are creating something new. Accordingly, the parties should have a clear understanding of who will own the intellectual property rights in that new creation.
The client will usually require that you assign all the intellectual property rights in the website, upon completion, to them. You should state in your terms and conditions that you will assign these rights, but only upon full payment for the services you have provided. You can prepare a prototype for your clients, and once they are happy with it and have approved it, you can then hand over access information for the newly developed website.
If you use open-source software, you should address this. Your client will want to know that you have complied with the open-source requirements.
This fact sheet outlines the changes to data and privacy protection in 2023.
Confidential Information
Confidential information refers to any information that is not publicly available and intended to be kept private. It may include:
- data;
- designs; or
- information on how the business operates.
Client agreements typically include a confidentiality clause to protect confidential information disclosed between the parties.
Your client may provide you with confidential information about their business when providing you with their website idea. Likewise, your business may disclose confidential information when creating a website. Therefore, your terms and conditions should create an obligation that a party who receives confidential information does not disclose that information to any third party or only to their personnel on a need-to-know basis.
Website Terms of Use
If your business has a website, you need a website terms of use. These apply to every website visitor, protect your website and limit your liability for your website. The terms claim your copyright and intellectual property rights
and set out permissible and prohibited uses of your website, including that competitors cannot use your website information.
Privacy Policy
If you collect, use and disclose personal information from customers, including using the information for direct marketing, you need a privacy policy to assist you in complying with the Privacy Act. The privacy policy is between you and each person you collect personal information from. It sets out what personal information your business collects, how it is used, and under what circumstances it will be disclosed to third parties.
Key Takeaways
It is essential for website developers to have a strong client agreement that sets out the rights and obligations of both parties from the beginning. This helps you build a good relationship with your client and avoid disputes in the future.
If you need assistance drafting terms and conditions for your website development business, our experienced contract lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
Frequently Asked Questions
A client agreement is a legal contract that establishes the terms and conditions of a business relationship between the service provider and a client, including the rights and obligations of each party.
The schedule is a document on the first page of an agreement that sets out important particulars of the arrangement, such as the parties, price, and payment terms.
It is best practice to have a lawyer draft your client agreement. A poorly drafted agreement may result in poor commercial relationships or potential disputes in court.
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