5 Important Aspects Every Client Service Contract Should Cover

When running a business, employees provide an invaluable service for things that need to be done on an ongoing basis. There are many times, however, when you need specific work done for a certain amount of time, or you need specialized services on a limited basis. When this is the case, bringing in outside contractors or vendors is an excellent option. In order to avoid conflicts and other issues, anyone who is brought in to perform this type of work should be asked to sign a client service contract. When having this type of contract written up, make sure it includes the following five essential aspects.

Detailed Information on Services Provided

The contract needs to include detailed information about the work or services that are being provided. This should include information about what the work is, when it will be completed, what potential costs there are, and any other relevant details. Having as many details as possible will help to avoid misunderstandings and disagreements, which can lead to conflict down the road.

Detailed Information on Payment (Including How Payments will be Handled)

Including information on how you will pay the contractor is very important. This should cover things like how much they will be paid and through what medium, when they will be paid, and other related information. If there are expenses that need to be covered in order to perform the work, you can include information about how and when they will be paid in this section as well.

How Changes are Handled

While it is best to make an agreement on the work that is to be done and then leave it at that, sometimes changes and modifications are unavoidable. Including information on when and how changes to the contract can be made is important. Addressing the issues surrounding making changes to agreed-upon work now can prevent sticky problems later.

How/Why the Contract Can Be Terminated

All contracts need to come to an end at some point. Including the details about how and when this should happen is very important. Ideally, the contract will end when the work is successfully completed and the payments are made. If the contractor decides they can no longer finish the job, or you decide their services are no longer needed, however, it is good to include information about what should happen. Including these types of details will help ensure everyone knows what to expect should it be necessary to end an incomplete contract.

Details on Contractor Status

A contract of this type should make it very clear that the contractor is working independently and they do not have employee status. It should also point out that the contractor is responsible for attaining and maintaining any licenses or permits that are required to complete the work.

Custom Contracts are Best

While there are many different generic client service contracts available, they are almost never a good idea to use. Each service contractor is going to be unique, and the contract needs to be unique as well. Contact APH Law to have us create a new contract that will meet your exact needs.

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Written by APH Law PLLC

APH Law PLLC

When we founded APH Law PLLC in 2010, we did so out of a desire to connect business owners with more and better opportunities. No matter what industry you’re operating in, creating a strong foundation, preparing for the future, and protecting against challenges are key to long-term success. It is this kind of support that we take tremendous pride in helping businesses.