Term Vs Completion Contract

If you`re a freelancer or a business owner working with freelancers, you might have come across the terms “term contract” and “completion contract”. Both contracts outline a working arrangement between you and the freelancer, but they have different terms and durations.

What is a Term Contract?

A term contract is an agreement that outlines a working relationship between the freelancer and the business for a specific amount of time. It could be for a month, six months, or even a year. The contract outlines the terms of payment, the scope of work, and other details that will govern the relationship between the freelancer and the client.

A term contract provides a level of security for both parties. The freelancer has a guaranteed income for the duration of the contract, and the business knows that they have someone committed to the project. They can also rest assured knowing that the freelancer will not leave halfway through the project.

What is a Completion Contract?

On the other hand, a completion contract is an agreement that outlines a working relationship between the freelancer and the business for the specific task to be completed. It could be a one-time project or a series of small projects. Completion contracts are generally shorter than term contracts.

Completion contracts are useful for businesses that do not need a freelancer for an extended period. It`s also a great option when a client has a specific project with a clear deadline.

What are the Advantages and Disadvantages?

While both contracts have their advantages, there are also some disadvantages to consider.

For a term contract, the biggest advantage is that it provides long-term security for both the freelancer and the business. The freelancer can plan their workload around the contract, and the business knows that they have someone committed to the project. However, the disadvantage of a term contract is that both parties are locked in for the duration of the contract. If the freelancer is not performing to the agreed-upon standards, it could be a long-term headache for the business.

For a completion contract, the biggest advantage is that it provides flexibility for both the freelancer and the business. The freelancer can take on other projects once the current one is completed, and the business does not have a long-term commitment. However, the disadvantage of a completion contract is that it can create uncertainty for the freelancer. Once the project is done, they will need to find another project to work on to keep their income flowing.

Conclusion

Both term contracts and completion contracts have their advantages and disadvantages. It`s essential to weigh the pros and cons before deciding which type of contract to use. If you need a long-term commitment, a term contract might be the best option. If you need a freelancer for a specific project, a completion contract might be the better choice. As always, it`s essential to discuss the details with the freelancer before signing any contract.

CBR