You run your own construction firm and have done so successfully for numerous years. You have an excellent reputation within the local community. Generally, projects go smoothly and customers pay on time and are happy with the job. However, as you continue to grow you are thinking about adding further protections legally.
You’ve often operated on the basis of verbal agreements and feel that it’s time you have everything down in writing. Outlined below are some of the key benefits of having written contracts.
Parties know where they stand
Complex disputes frequently occur from very simple misunderstandings. For instance, you told a client that you could have the job finished in three weeks. They genuinely believe that you said two weeks, and now their opening day has been delayed and they blame you. Everyone forgets things, particularly when there are numerous details to remember. Having a written contract means you can include vital provisions such as completion dates, each party’s obligations and even conflict resolution terms — all of which lessen the chances of a serious dispute.
Protecting your rights
As well as offering clarity, a contract strengthens your rights and is legally enforceable. Technically, a verbal agreement can be binding but it is much more difficult for the court to enforce than a written document. While most of your deals go smoothly you always want to make sure that you have enhanced protection should a dispute arise. This can save you time, money and resources that are better devoted to your business.
Contracts are beneficial but only if they are drafted appropriately. Having legal guidance behind you as you come up with written agreements will be extremely beneficial.