How can you reduce the risk of a contract dispute?

On Behalf of | Dec 11, 2019 | Firm News |

New Jersey business owners like you work with contractors for many reasons. They provide useful services and can do things you may not be able to on your own. But contract disputes can be nightmarish for anyone involved. Today, we will take a look at some of the ways you can minimize your chance of having a contract dispute. 

The National Academies Press lists methods for reducing the potential of contract claims. A lot of it boils down to clear, concise communication. Unfortunately, a lot of contract disputes and claims stem from avoidable problems. In many instances, one or both parties being more clear in their communication could have done the trick. 

For example, all contracts should identify every party involved. The scope of provided services should also be clear and simple. Do not mince words. Specify who will be performing any actions and what the report should look like. Specify who will verify employee performance. You must also be sure that the responsibilities of the project are clearly defined. 

Documentation is as important as clarity. When in doubt, document something. Have it in writing, because writing holds up better than relying on someone’s memory. This can include your agenda, contract, and any attachments. Keep all documents in one place. Have a digital copy as well, just in case. If you make any changes, be sure to document them as well. 

Finally, all parties should come together before signing the contract. Read everything over carefully. Ensure it is all clear and understood. Limit miscommunication from the start and you may find that your risks are immediately lowered. 

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