A written contract is needed, especially if it is for a friend. You also need to stipulate when the money is due, if there is to be half paid and then the rest on completion, etc.
Deadlines need to be set both to protect you and the client.
You also need to have in your comtract who will own the graphics that you use. Believe me, this has come up for other designers that I know.
If you only do half the site and the client says he has changed his mind and wants it redesigned, on whose nickel will that be?
Who will do the copy? I charge less since I will spend less time if the client gives me good copy that I don't have to edit and correct.
I won't tell you what I charge per hour as it is a lot more than a plumber. My contracts are tight and I learned that by getting stung once. But I was only out about $100 so that wasn't bad. And, hopefully, I won't get stung again.
I also design sites that comply to the Website Accessibility Standards (state and federal) so if the person is a vendor, there will be no problems down the road. It also makes their site accesible for PDA's, cell phones, etc.
I do not take on more sites than I can handle at one time. I also work for a company where I am the webmaster so I really dont want to be tied down doing this stuff at night. I don't want to get bored with it. I've been doing sites since the first browser gave us that capability and I want to remain fresh and excited with the net.
Look at some of the other contracts that other designers have made. You may find some on web sites. Study them and adapt their ideas into your own.
But have a written contract...That's a definite...Without it,, you won't have a chance to collect on a deal gone sour. Both you and the client will know the exact schedule and expectations.
Good luck!
**Quiquid latine dictum sit altum viditur.**