The Importance of Signing Contracts

Sign A Contract Before You Start Work

The signing of the contract phase means that you have reached the point in the selection process where you have been awarded the project.  But before you start building anything you need to sign a contract that states all the terms of your agreement.

Before you sign any contract or any paperwork you must read the terms thoroughly.   You need to agree with all the terms in the contract before you sign anything.   Some terms will be negotiable while others won’t.

If you do not agree with some of the terms in the contract then you need to let your contact know immediately.  Don’t be afraid to let your contact know that you are going to make amendments to the contract terms.

To make this process a little easier you can prepare some standard terms that you will use on every project that you work on.  Use a lawyer to help you prepare some terms that you will always use.

Sometimes the negotiating process takes a while and the project terms may require you to start by a specific date. If this does happen then you need to ask your contact to give you a letter of intent.  The letter of intent should state that you are going to start work on time, while the two parties complete the terms of the contract.

Warning: Some companies may just give you a purchase order.  A purchase order is not a contract and you need to read what the P.O. says, clearly.  If your contact is expecting you to agree to the same terms that they have agreed to by taking on the project, then you must insist on getting a copy of the contract before you start work.

You should be willing and open to negotiating the terms of the contract with your contact.  Your unwillingness to negotiate will force your contact to find another company to take on the work.  Negotiating is a normal process do not be intimidated by your contact and only agree to terms that you agree with.

Much Success To You!

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