One of the respondents to my survey on the future of contracts told me (rather depressingly) that No-one cares about the contract. They just want the goods… But it is actually more nuanced. There are two different motives for two distinct stages: before signature: the parties are only focused on
Cashflow is King. Yet getting paid is a perennial problem across all projects, sectors and countries. But do you know how bad it really is? Global data According to the IACCM 2015 Report Payment Terms: Do Large Companies Abuse their Power?: 51% companies find that negotiating payment terms is becoming
One of the contract traps for anyone providing construction works is a fitness for purpose obligation. This type of strict liability output obligation is rarely expressly included in a construction contract* (one of the arguments being that it is not covered by standard insurances). However… Fit for furpose Whenever I
In studying the role of contract visualization, Stefania Passera’s doctoral dissertation Beyond the wall of contract text (2017), she cites research that: Clear and implementable contract terms are crucial in building successful business relationships Well-structured and well-developed agreements foster better relations Long-term successful relationships require strengthened terms on communication, role
Copies of my book How to Write Simple and Effective Consultant Appointments in Just 500 Words have been prompting contacts, clients and friends to actually sit down and review their existing contracts. Bill Evans from D2E said “I must say, it was easy and compelling reading. The contents provides so
A contract, whether it is a multi-million pound construction project, a structural survey on a house you were buying, or the design of your porch, is there to solve a client’s problem. Client’s don’t buy drills, they buy a tool to help them create holes. Client’s don’t buy porches, they
There is no point deciding to write a contract until you have decided it’s purpose. What is your contract meant to do? Here are some suggestions: Create trust You may decide that your contract should create or enhance trust between you and your contract partner. Your contract acts as a
However well-drafted your contract is, there are some terms you cannot avoid and which may be added into your contract. Implied terms can be added to your contract, without your knowledge. They can arise from custom, be imposed by statute, or from decisions of the courts (known as case law),
One of the issues I have grappled with is whether a contract can result in project success. Can your terms encourage the project team to meet its objectives (the carrot approach) or do they merely provide remedies in the event that those objectives are not met (the stick approach)? If
In most contracts, there is a balance to be struck between 3 key aims: time, cost and quality. It is impossible to have the best of all three. The British Library project is a great example of when the decision-makers chose quality as their priority, sometimes without thinking about the