Thursday, November 03, 2005
Writing Contracts
In this world of entrepreneurial and small business expansion, it is critical to have a contract that delineates and provides clarity about services that are being offered as well as the relationship between the client and the business provider. A contract is a list of agreed upon actions, results and time parameters between two or more parties. Without defaulting to pages of complex language, a contract can be a document that is concise, simple, informative, and legal. The following is a list of three items to be detailed in the contractual agreement:
A. Service-Expectation summary
B. Financial Terms
C. Rights of Cancellation.
Service/Expectation Summary
1. Spend time listening with the client to hear the vision of what is wanted. Discuss expectations, wants and desires in specific detail. Identify what is a wish, a want and a requirement in the project. As the expert, it is your responsibility to elicit the clients “pictures” about what they are envisioning. Be clear about the client’s budget and ability to be flexible with financial parameters of the project. Discuss any history the client has had with other providers to reveal any upsets and breakdowns. This history can predict potential concerns that might re-occur in your relationship with the client as well as any hidden unfulfilled or unreasonable expectations that could be transferred to you. Write the contract including the clients' expectations in their words wherever possible. Be as specific as you can about the client’s expectations along with the product and service you will provide. If you promise anything and everything without clarifying the specifics, breakdowns are predictable.
2. Provide a summary statement of the services you are providing. You are the expert about the services you are providing, not the client. Describe specific distinctions of the services you provide in a way that educates the client about what you do and what you do not do. Never assume that the client knows what they are asking for. A written brochure that lists services you provide can be helpful as a general overview for developing client relationships. (When you have written your statement of services, have someone outside your area of expertise give you feedback about whether all elements of the contract are clear and understandable.)
3. After you have written a detailed contract, read it through out loud with the client and make sure that you are mutually clear about each term of agreement. This is the opportunity to correct and edit the contract.
4. Contract for different phases of the process and product of your service contract (i.e., Evaluation, Research, Consultation, Production, Post-Production Follow-up, Return Policies, etc.).
5. Include what you will do and won’t do, what you will be responsible and liable for or not.
6. Identify by when the project will be complete and what is to be included in the completed project.
Watch for the next BLOG discussing Financial Terms of a Contract.
A. Service-Expectation summary
B. Financial Terms
C. Rights of Cancellation.
Service/Expectation Summary
1. Spend time listening with the client to hear the vision of what is wanted. Discuss expectations, wants and desires in specific detail. Identify what is a wish, a want and a requirement in the project. As the expert, it is your responsibility to elicit the clients “pictures” about what they are envisioning. Be clear about the client’s budget and ability to be flexible with financial parameters of the project. Discuss any history the client has had with other providers to reveal any upsets and breakdowns. This history can predict potential concerns that might re-occur in your relationship with the client as well as any hidden unfulfilled or unreasonable expectations that could be transferred to you. Write the contract including the clients' expectations in their words wherever possible. Be as specific as you can about the client’s expectations along with the product and service you will provide. If you promise anything and everything without clarifying the specifics, breakdowns are predictable.
2. Provide a summary statement of the services you are providing. You are the expert about the services you are providing, not the client. Describe specific distinctions of the services you provide in a way that educates the client about what you do and what you do not do. Never assume that the client knows what they are asking for. A written brochure that lists services you provide can be helpful as a general overview for developing client relationships. (When you have written your statement of services, have someone outside your area of expertise give you feedback about whether all elements of the contract are clear and understandable.)
3. After you have written a detailed contract, read it through out loud with the client and make sure that you are mutually clear about each term of agreement. This is the opportunity to correct and edit the contract.
4. Contract for different phases of the process and product of your service contract (i.e., Evaluation, Research, Consultation, Production, Post-Production Follow-up, Return Policies, etc.).
5. Include what you will do and won’t do, what you will be responsible and liable for or not.
6. Identify by when the project will be complete and what is to be included in the completed project.
Watch for the next BLOG discussing Financial Terms of a Contract.
