Actually, that setup just seems really reasonable to me... It just makes sure everyone knows what they're getting into. Calling it overkill feels like missing the point of protecting your own time and work.
Tbh it reminds me of my buddy who does freelance coding. He had this client who kept asking for "tiny changes" for months after the project was done. Never paid extra for any of it. Honestly, watching that mess made me get everything in writing now too, even for small jobs.