Statistics vary but some sources say about 60% of gym memberships go unused. And terminating these contracts comes with a lot of fine print.
A lot of people think that terminating a contract is not worth the fight.
Today’s video looks at terminating construction contracts or you can read further.
You’ll have seen the news about a really large construction company that went insolvent.
Where it got nasty was that this company knew they were insolvent for 4-5 months before they announced it.
They knew they couldn’t pay contractors.
But they still got the contractors to do the work.
How did they manage to get people to ostensibly work for free, and finance a company that was about to go bust?
The answer is the terms of the contract.
So how do you avoid ending up in a position like this?
- Sign better contracts
- Negotiate clauses upfront
Here’s what to look out for:
The termination clause.
Clients can terminate you for loads of reasons
But often you aren’t given the same luxury.
If they terminate you for defaulting on something, you should be able to do the same. So if they default on payment, you should be able to walk away.
When you sign that first contract you want to make sure there’s a reciprocal termination clause.
For more contractual advice, Quantum Contract Solutions is here to guide and assist you through everything contract related. Let’s reduce risk in your contracts and save time and money, just click this link to get our FREE case study to show you how clients just like you are doing it.
