The More You Know… Your Contract

When a client or potential client calls us to ask a question about their matter, our response is what does the contract say?

Sometimes a client can answer, but other times there is silence.

Contracts are not documents to be celebrated upon signing and then shoved into a drawer to collect dust for the remainder of the project.

The contract contains the rules of the game. You might have the game pieces, the dice, and the money, but without the rules the game is rarely played fairly.

A problem is that contracts can be long – often too long – and complicated. Not everything in the contract is relevant to everyone. Plus, you are probably working on more than one contract at once.

So, what should you do? In no particular order:

• Try to have a repository for all signed contracts. Don’t get lost in drafts, half executed versions, and multiple versions of supplementary conditions. Consider using an electronic signature platform, so that all parties receive the exact same version of the signed contract with the attached documents.
• Be clear which documents are contract documents and attach them to the contract.
• Consider using similar contracts/terms for your projects. If you are an owner, consider using a similar contract form or processes. If you are a contractor, consider incorporating your contract with the owner in your subcontracts. This is not possible in all circumstances and it is more difficult for subcontractors and trades.
• Create summaries and charts or ‘cheat sheets’ for the processes in the contract. Some examples are:
  • a checklist for the requirements for a proper invoice;
  • a diagram of the process for making a claim;
  • a list of items you can claim for delay and the timeframes for being able to do so.
• Educate your team. Add a discussion about specific contract terms to an internal meeting, or general meetings.
• Call a lawyer. Of course we can help with all the above. Call or email us to find out more.

The content in this article is for informational purposes only and does not constitute legal advice.