Contracts! Are they really necessary?

Many businesses put off contracts because:

-          They take too long, I want to start on this project now.

-          It’s too expensive.

-          I trust who I am working with (external and internal).

-          We agreed it verbally, so are on the same page.

That is until something goes wrong and you are left wishing you had a contract to refer back to:

-          What was agreed.

-          Is that piece of work included.

-          When should we have been paid.

-          What happens next.

The ideal contract sets out clearly your agreed project scope, fees, management of the project and dispute resolution, and then you put it in a drawer and never need to look at it again.

Having a contract is not just about the legal protection, its primarily for clarity, understanding and detailing expectations which it establishes between you and your partners.

If a partner does not agree with the scope or had different expectations, you find this out early and discuss it upfront. It gives you a clear footing to start your relationship with your partner/client/customer and the best chance of maintaining that relationship in the long term. And avoiding expensive, lengthy legal disputes is always welcomed.

In the end having a contract is a win-win for all those involved in your project, and we strongly recommend you have one in place.