Standard Contracts Good or Bad?

By Apr 18, 2009
Free Grant CD - Grant Funding Solutions

Someone asked me today where they could find a good standard contract. I’m an advisor on contract management, but I carefully considered my response. There is no such thing as a standard contract.

Do you provide a ’standard’ service to your customers? If so then a standard contract may be appropriate. But does anyone think they are just doling out the same as everyone else?

It would be meaningless to use someone else’s contract that focuses on their service and their outcomes, with no relevance to what you deliver.

Don’t sell yourself short by giving your customers a contract that has no relevance to the service that you deliver and the outcomes that you can achieve. Your business is unique. You should only consider signing a standard contract if you customer demands it.

If you have to do this, then you must negotiate the terms and conditions of your supply to ensure that any service levels are amended to reflect the quality of service that you provide. This will take a little more work, but if you don’t do this you may find yourself on a different metaphorical page to your customer, with their expectations sitting a long way from your business promise, and you left unable to deliver and in breach of contract.

When constructing your contract, consider the goodwill you are selling. Don’t include unreasonable terms and conditions in your contracts, because presenting these to a customer who has just agreed in principal to make a purchase, may alter the way they see you and might make any contradictory implied warranties or promises look just like lip service.

Make your standard contract reflect what you deliver, quantity, quality and include the outcomes that you will deliver. Don’t make it longer than it needs to be.

You should be careful of legalistic mumbo jumbo if it is included in your contract just for the sake of it, but if you do not understand it have someone tell you what it means, as it may be vital to the agreement.

When you have created your own ’standard’ contract, you can use it each time you do business, making minor amendments when they are required. Just ensure that standard is specific to you.

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