Upon creating business contracts with a new partner or vendor or getting a project started for a client, it may seem easy enough to knock out the details verbally, sealing the new venture with a handshake, moving forward in the knowledge that you have an understanding and everyone will hold up their end of the bargain. The problem is, even if an outright dispute does not arise later, it is often easy for some to forget (whether conveniently or not) what details were agreed on—or they may change their minds.
If you have everything in writing, there is much less room for a misunderstanding about the original agreement. Writing a business contract can be a fine art though, and one that should be left to an experienced business attorney to assure that you are completely protected in the future. All the basics should be included, outlining who is involved, managing the project, payment structure, and more. What is central to the contract though is the project scope. And with the help of your attorney, you can create one that will protect you from the beginning to the end of the project.
If you are a contractor working on a major construction project for a client, the project scope should be very specific so there are not questions later. Outline exactly what is to be done, and how. Your responsibilities should be clear, and all expectations and goals for the project should be listed, as agreed on by both parties. Each phase of the project should be described, as well as the accompanying tasks. List all materials that will be used, and if possible, include the brand names to be used for different components and systems. This way there is no question later if the customer thought you were using a different type of window or door, or HVAC unit or hot water heater.
The budget should be summarized for each phase of the project as well, accompanied by a schedule and a final deadline overall. It is also extremely helpful to add a clause regarding how changes are to be made, should the homeowner wish, during the project. Be clear about handling delays due to weather problems, along with other possible disruptions like vendor issues that may be out of your control. And last, discuss with your business attorney what type of dispute resolution clause should be added to the contract, whether favoring litigation, arbitration, mediation, or judicial reference—in the case that a legal dispute arises.
Do you have questions about drawing up or signing a business contract? Are you in the middle of a business dispute and require experienced representation? Call Shane Coons now at 949-333-0900 or email us at Shane.Coons@seclawoffices.com. We will be glad to review your case, answer your questions, and help you move forward with success.