One thing I often hear young designers contemplate is whether or not to supply the client with something in writing (e.g., an estimate or quote). The answer to that question is a definitive 'yes.'

Writing an estimate is easy. Basically, it's an outline of what the client can expect from you and what you will be expecting from the client, including, but not limited to: timing (turnaround), costs, revisions, number of hours per action and the like. Beginning a new project on the same page as your client is the best and only way to start. An estimate or quote can, and most likely will, be revised later to include any changes, deletions and/or additions the client may insist upon.

WHAT INFORMATION SHOULD AN Estimate CONTAIN?
Before you put anything in writing and send it to the client, you need to understand that this document is for the both of you. It should tell a client what they can expect from you, when and how they can expect it, how much they will have to pay and how soon they will need to pay it. However, this estimate can be used in a court of law to sue you in case of a breach of contract which means not to promise more than you can deliver. Writing a detailed estimate can help you avoid this problem.

THE SCOPE OF WORK
One of the things that is important for a good estimate to include is the scope of work the project will entail. In other words, a breakdown of your creative process. Normally, I will include a step-by-step outline of the process, including the number of hours estimated for each phase of the project. This helps you to better understand how many hours you really think it will take to complete each step and also helps keep the client on realistic ground.

Some clients will only want to pay you from the time you open their file to the time you close it and send it via email, and they usually guesstimate about 5 minutes. 

Do you normally sketch first? If so, the scope of work in your estimate should include a phase where you estimate the amount of time and out-of-pocket expenses, if any, the process will take to get through your sketch phase. Then, the design phase, the production phase, and so on. Remember to always include how client changes will be handled. Whether you negotiate a flat rate or charge by the hour, it is important to be clear and upfront with a client from the get go so there are no discrepancies later.

TERMS AND CONDITIONS
Another important thing to consider is putting your payment terms and conditions for payment on your estimate. This would tell the client what you expect upfront, as a deposit, as well as how much they will have to pay after that and when each payment is due. To make it easy for your client to understand, it is a good idea if your desired payment schedule somehow coincides with each phase of your estimate. Depending on the project, each milestone in the process you meet can be a point where a client needs to make a payment. However, be sensible and don't make the payment process to complicated or you will scare the client away.

RIGHTS AND OWNERSHIP OF ARTWORK
This is very important to decide and make clear with any client from the get go. You see, there is a huge misconception that the client owns all of the original artwork once they have paid your invoice in full. Depending on how you are hired to do a job (i.e., through a temp agency or you are working with your own client) will make the difference between who owns the final, original artwork -- you or your client?

For more information about rights and ownership of original artwork, please visit the AIGA website. There, you will find a plethora of helpful information about copyright, as well as a standard form of agreement for design services that you can customize and download as a PDF for your computer.

ACCURACY OF FINAL ARTWORK
Whether you are equipped with staff to proof every piece of material that leaves your office or you are a one-man show doing everything yourself, whoever is responsible for making sure that all the spelling and information is correct on any given project should be carefully and clearly outlined in your estimate. Some clients will assume you know everything they do about their project, including things like UPC codes, item numbers and/or inventory. Again, it is always important to be clear about what you are responsible for and what the client is responsible for. This helps to keep revisions and additional costs down on projects, as well.

OUT-OF-POCKET EXPENSES
Lastly, you will want to include information about out-of-pocket expenses and how prefer to handle these. Will you be up charging the client for materials purchased for and during the project? If so, what percentage? Out-of-pocket expenses should include anything purchased to complete the project to the best of your ability within the client parameters and budget.

Don't reinvent the wheel each time you give an estimate. Work on one that will include all the information you want your client to know, up front, and save it as a template. Something you can revise for each project, but also a file that you don't have to begin from scratch each and every time  you need to send and someone an estimate. This is a very good place to start with each and every project that may come your way.


Contracts: To Use or Not To Use? -- L.A. Link