Contract for work. Main provisions and appendices to the contract for work.
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Today's video will focus on the basic provisions of a contract.
In my experience, I've encountered contracts ranging from a single sheet of paper to over a hundred pages long, and each of them has its own validity. After all, in our country, we have freedom of contract, and we are free to negotiate as we see fit on all terms of the relationship. Naturally, such agreements
must comply with the law. And if you haven't agreed on something within the specific agreement, then your relationship is governed by the provisions of that very law.
So, what's essential in a contract? If you've watched videos about contracting on my channel, you probably know that the essential terms are the subject matter and deadline. Let's also add the price and payment terms. Now we've outlined the most important provisions. Let's look at each in more detail.
Subject Matter.
If the subject matter of the contract can be described in a couple of sentences, for example: painting
a fence located at such-and-such an address with paint provided by the client, in two coats. That's sufficient. The contractor's job description is clear. But what if we need to do more than simply
paint the fence, but apply paint to it, and then add some inscription or design on top of it? In this case, we'll need to create an appendix, called the Technical Specifications, which will need to include at least a sketch
of the future work result. To avoid misunderstandings and conflicts in the future, when accepting the work, the subject matter must be described in as much detail as possible. If we're talking about renovations or construction, a full-scale design, not a preliminary one, should be attached to the contract.
Deadlines. At a minimum, you should specify the start and end dates for the work. In a situation like painting a fence, this would be sufficient, but if we're talking about construction, a work schedule is necessary so you can monitor its progress and, if necessary, file claims against the contractor. Such a schedule should be attached to the contract. Deadlines are essential, as without them,
it's impossible to control the construction, and you could be very upset to discover that the site hasn't been completed yet, even though the contractor was technically on schedule.
Furthermore, you can include penalties for missed deadlines, which will further encourage the contractor to complete the work conscientiously.
If you're the contractor, you also need them to plan the work on site and supervise your employees and subcontractors.
Price Although the price is not a material term of the contract, it certainly needs to be determined in advance, as does the payment procedure. Whether or not to include the payment procedure as a separate appendix depends on the complexity of the procedure. This makes sense when the financing schedule is extensive and tied to specific events. We always recommend tying the payment procedure to the work schedule.
I'll separately address a few more points that, in my opinion, are very important. Be extremely careful with the size of the advance payment. You might need to record a separate video about the payment procedure, as there's a lot of information involved.
Secondly, if the work involves stages of completion, be sure to provide for staged acceptance of the work. This will allow all parties to the contract to feel comfortable, or to make some decisions at a later stage, without waiting for the contract to expire.
Responsibilities of the parties under the contract. It's best to agree on penalties upfront, and you must understand that a penalty in the contract is not a way to enrich one of the parties; it's a way to discipline both the contractor and the client. Warranty obligations: I highly recommend adding this section to the contract. It's especially important to outline the procedure for interaction in the event of a warranty claim. Jurisdiction, that is, which court will hear a dispute if it arises, is also important. We always recommend establishing jurisdiction based on the plaintiff's location. Pay close attention to this point.
I'll stop here, as discussing the content of a contract could take hours.
We've covered the topic of the video. If you have any questions about it or need help with the contract, please leave a comment below or message me directly in messenger.
Links to my work messengers are in the comments below the video.
If you need advice on a contract or need a standard contract for your business, please also message me in messenger. We'll handle everything.