AE Blog - 10 Tips on Drafting Better Contracts
Design professionals often find themselves involved in disputes arising out of services they performed at a project. In such instances, the existence of a properly prepared and executed contract may mean the difference between remaining a party to such a dispute or being relieved of liability for such claims. The days of the handshake deal are far gone and it is imperative that the design professional be armed with a written agreement that clearly delineates the nature and extent of each party’s roles, rights and responsibilities. Below are several important tips on drafting a well versed agreement:
- Be clear as to the scope of your services.
- Identify specific exclusions.
- If appropriate, indicate that there are no third party beneficiaries to the contract.
- Include a copyright protection provision.
- Be Cautious With Indemnification Language.
- Include Payment language.
- Add Termination Language.
- Include Limitation of Liability Language.
- Consider Alternative Dispute Resolution.
- Get A Fully Signed And Dated Contract
While having an appropriate contract is no guarantee against a claim, the absence of one certainly impedes the design professional’s ability to extricate themselves from such claims. The paramount rule is to be cautious when entering into professional service agreements. The design professional must be careful to review and understand all of the terms and conditions of the agreement, which set forth the rights and responsibilities of the parties, prior to executing the agreement. In this regard, the design professional should strongly consider consulting with an attorney qualified to assist in drafting and agreement which with fully protect the design professional’s interest. For more details from Steven Goldstein article please go to our resource library.
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