Why is a written contract important?
- Creates a record of agreement for both parties of the specific work to be done
- Manages client’s expectations
- Reduces disagreement regarding the scope of work to be done
- Mitigates risk for both parties — can mitigate the exposure of the insured
*Remember a written contract is required for coverage.
What should a written contract include?
Include a specifically defined scope of work in your written contract. The scope of work outlines what is being done and what is not being done.
Important considerations regarding your contract
- Clearly set forth what you intend to do and what you do not intend to do
- List materials provided and by whom, who is paying for them and what you will rely on in undertaking the work
- Include a Limitation of Liability Provision if applicable, however these provisions are not applicable in every jurisdiction
- Do not provide guarantees or warranties for services
- Be aware of any indemnification provisions in a contract
- Ensure any modifications to the contract and/or scope of work are signed off by the client before the work is done
- Select an attorney to review your contract
- Invest time and money up front to avoid future problems and expenses
- Remember a form contract is better than no contract
- Verify your contract complies with your state, since laws vary from state to stat