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How to Read a Web Design Contract: Key Clauses

Most people read a web design contract once, when they’re keen to start. It decides what you get, when you pay and who owns the site.

We write web design contracts as an agency, and we build sites through our WordPress development service, so weigh that. Every fact below about copyright, domains, data protection and WordPress licensing was checked against the U.S. Copyright Office, GOV.UK, ICANN, the European Commission and WordPress.org in October 2026. This is general information, not legal advice. Have a lawyer review your contract before you sign.

Short answer: Read the scope first, because every other clause depends on it. Check that payments follow deliverables, revisions and changes are defined, and copyright in custom work is assigned to you in signed writing, not just licensed. Keep the domain and accounts in your name, and know where disputes are heard.

What Official Sources Say About Key Clauses

As of October 2026, from the U.S. Copyright Office, GOV.UK, ICANN, the European Commission and WordPress.org:

ClauseWhat the source says
US first ownerCopyright vests first in the author
Work made for hireCommissioned work qualifies only in 9 categories, signed in writing
US transferMust be in writing and signed by the owner
UK commissionCreator owns it unless agreed otherwise in writing
Domain transferOnly the Registered Name Holder can approve or deny it
Data processorContract must say what happens to the data at the end
WordPressThemes and plugins inherit the GPL, in WordPress.org’s view

Sources: Copyright Act chapter 2, Circular 30, GOV.UK on copyright ownership, ICANN Transfer Policy, European Commission on the GDPR, WordPress.org license.

Scope of Work: The Section That Determines Everything

The scope is the contract’s load-bearing wall. Timelines, payment, revisions and ownership all depend on what it says will be delivered.

Weak scope language looks like this: “Agency will design and develop a website for Client.” It names no pages, features or technology, so any later disagreement has no answer.

Strong scope language includes:

  • Page count and page names
  • Technology: which CMS, plugins and hosting environment
  • Functionality: forms, e-commerce, search, member login
  • Performance targets you can check, if they matter to you
  • What is explicitly excluded
  • What happens when something outside the scope is requested

If the scope sits in a proposal, check that the contract includes it by reference.

Payment Structure: Who Has Leverage at Each Stage

Whatever split you agree, the details decide who holds leverage.

What triggers each payment? “Final payment at launch” sounds clear. But is launch the site going live, your written approval or a date? Define it.

Are milestone payments tied to deliverables or dates? Date-based payments fall due whether or not the work is done. Deliverable-based payments fall due when you can see the work.

What happens if you need to pause or cancel? The contract should say what you owe for work done and what you receive: the designs, files and code so far. Raise any clause making the full fee due regardless of progress.

Revision Rounds: More Important Than You Think

“Unlimited revisions” sounds generous, but it can leave nobody sure when a phase is finished.

Better contracts specify:

  • How many revision rounds each phase includes
  • What a “revision” means: wording or layout changes vs. a structural redesign
  • What happens when the rounds are used up, and how extra work is priced
  • How long the agency has to make approved revisions

A new feature isn’t a revision. The contract should say how you request a change, how it’s quoted and who approves it.

Intellectual Property: Read This Section Twice

The IP section decides whether you own what you paid for. Paying doesn’t move ownership by default. In the US, copyright vests initially in the author (source), which with an outside agency is usually whoever wrote the code or made the design.

License, not assignment

Some contracts keep the copyright with the agency and give you a license. A US “transfer of copyright ownership” covers an assignment or exclusive license, not a nonexclusive license (source), and it must be in writing and signed by the owner (source). Look for signed assignment language.

Work made for hire

The Copyright Office says a commissioned work is made for hire only if it falls within one of nine categories, and a written agreement signed by all parties expressly calls it a work made for hire (source). Websites and software aren’t among the nine. So many contracts add a written assignment too.

In the UK, the creator of a commissioned work is its first owner unless you agree otherwise in writing. If the contract is silent, a court may find only an implied licence to use it (source).

Third-party components

The agency can’t assign premium plugins, fonts or stock photos it doesn’t own. Ask for a list of each component and its license. WordPress.org’s view is that themes and plugins inherit the GPL (source). The GPL is a license, so it doesn’t make you the copyright owner of a custom theme.

Agency portfolio rights

Portfolio clauses are normal. Check whether yours also covers your logo, figures or business information. Read ours as closely as anyone else’s.

Timelines and What Happens When They Slip

A rough duration without milestone dates is an estimate, not a timeline.

Meaningful timeline language includes:

  • Milestone dates tied to specific deliverables
  • Your own deadlines, such as content and feedback
  • What happens if the agency misses a milestone: a credit, a new date or a right to terminate
  • What happens if you miss one, and whether fees change

If only client delays have consequences, raise it.

Hosting and Maintenance: The Terms That Outlast the Project

The contract should say whether hosting and maintenance are included, required or optional, and what they cost after the first term.

Watch for:

  • Hosting through the agency as a condition of the project
  • Retainers that auto-renew without clear cancellation terms
  • “Support” that doesn’t say what’s included or how fast
  • Warranty or support that ends if you change host
  • Notice periods or exit fees

Who holds the domain and the accounts

Register the domain in your name. Under ICANN’s Transfer Policy, only the Registered Name Holder can approve or deny a transfer to another registrar (source). Your registrar must give you the transfer code within five calendar days of a request, and changing the registrant’s details can trigger a 60-day transfer lock (source). The same goes for hosting and analytics accounts.

Personal data the agency handles

If the agency hosts your site or runs forms that collect personal data for you, under the GDPR it may be your processor. The European Commission says the processor’s duties must be set out in a contract, which must say what happens to the data when it ends, and that the processor can’t appoint another processor without your prior written authorisation (source). The Commission’s standard contractual clauses meet the Article 28(3) and (4) requirements (source).

What a Dispute Resolution Clause Actually Means

Some contracts send disputes to arbitration instead of court. Either way, read for:

  • Where a dispute must be heard
  • Who pays the costs
  • Which country’s or state’s law governs
  • Whether written notice and time to fix the problem come first

A distant forum makes any claim costlier to pursue. Have a lawyer explain how the clause works where you are.

A Fast Pre-Signing Checklist

Before you sign, confirm:

  • Scope names pages, features, technology and exclusions
  • Payments are tied to deliverables, with “launch” defined
  • Revisions and change requests are defined
  • Copyright in custom work is assigned to you in a signed document
  • Third-party components and licenses are listed
  • The domain and accounts are in your name
  • Milestones have consequences that run both ways
  • Hosting and maintenance have clear prices and exit terms
  • Data processing terms exist if the agency handles personal data
  • A lawyer has reviewed the contract

Want a second view on scoping a project like yours? Get in touch.

Frequently Asked Questions

Should I have a lawyer review a web design contract?

Yes. IP, liability and dispute clauses depend on local law, and a lawyer can tell you what they mean where you are. Bring the checklist above.

What if I can’t negotiate the contract?

You can still ask what any clause means, and you can walk away. How an agency answers is a fair preview of how it handles disagreement.

What does “work made for hire” mean in practice?

The hiring party counts as author and owner. That covers an employee’s work, or a commissioned work in one of nine categories under a signed written agreement (source). Websites aren’t a listed category, so a signed assignment is the usual back-up.

Is a Statement of Work different from a contract?

A Statement of Work (SOW) usually sets out scope, deliverables and timeline. A master agreement often covers payment, IP and disputes. Read both, and check which wins if they conflict.

Can I modify a contract after signing?

Follow the contract’s amendment clause and get every change in writing. A US copyright transfer must be in writing and signed (source), so a spoken promise to hand over the code isn’t enough.

If I own the code, do I also own the domain?

Not necessarily. The domain, the hosting account and the copyright in the code are separate. Check who is the Registered Name Holder, since only they can approve a transfer (source).

Sent a web design contract you're unsure about, or planning a build? Tell us about the project, and we'll walk through what you'd receive and own before anything is signed. Contact us, or see how we build through WordPress development.