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
Last, review your contracts.
  • 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