Do I really need a contract, its only a small job?

Lets ask a slightly different question. Do we really need an agreement? The word "Contract" seams formal and evokes images of pages of formal documents created by an expensive lawyer but "contract" and "agreement" do in fact mean the same thing.

Contracts for a £19.99 Gym membership are common yet so often I hear of projects worth ten's of thousands of pounds being agreed verbally with nothing more than a handshake. Now please don't misunderstand a verbal / oral contract is just as valid as a written one but you need an independent person to witness and be able to recall your version of events and the details of the conditions or terms that were agreed.

Lets take a relatively simple electrical job, you take the day off work and are sat waiting for the electrician to arrive. He never shows up, you say you agreed the 21st and the electrician says 22nd. Alternatively the electrician has turned up but you are not home, you haven't left him a key and he can't do the work. He has wasted travel time, petrol costs, and now has to try and fill his day with alternative work. You thought he said the 22nd and he says you agreed the 21st. In both scenarios people will be expecting compensation for the inconvenience but who's in the wrong.

This is quite a simple example but clearly demonstrates the need for written agreements or the need for verbal agreements to be clarified in written form. Ensuring a well written contract / agreement is in place should not create suspicion or mistrust and any reputable tradesperson or trustworthy client should be happy to sign one. The wording and complexity of the contract should be appropriate to the scale and significance of the works. It is pointless expecting a reputable kitchen fitter to sign a contract that agrees for them to pay £750 /day damages if he doesn't complete a project that will take him 5 days and is worth £3000. Its totally feasible the kitchen fitter should pay some kind of penalty but it needs to appropriate to the circumstances and project.

A contract does not need to be complicated, expensive or time consuming to create, it is simple the basis for trust, if all the terms are written down in one place there is less potential for confusion and misinterpretation. It can be written by the supplier or the client, most importantly it needs to be written in a way that everyone understands, this is often a point lawyers fail to appreciate.

Typical basic things a contract for a small project are.

1. Start and finish dates

2. Finances, total cost, stage payments (50% on order 50% on satisfactory completion)

3. Penalties for work not being done on time or not being able to be done

4. Specifications, materials that are to be used, colours of finishes, size of plants

5. Cancellation

6. Insurances

7. Waste disposal

This website has some free templates which you may find useful.

#doIneedacontract #simpleenglish #avoidconfusion