They say change is as good as a holiday…
Well, what if making changes could buy you a holiday? Or just make you a bunch more money?
Today’s video is You’re Doing Subcontractor Agreements WRONG! Here’s a Smarter Alternative. You can watch it here or continue with this quick read.
A new client of ours came in with a VERY common problem.
It’s an issue we see ALL THE TIME. They’d put together a proposal. They’re a steel fabrication business working for a large oil and gas company. So they submitted their proposal and it was ACCEPTED.
As part of the proposal, they listed all their terms and conditions.
They then were issued a Purchase Order that had the client’s terms and conditions.
They were confused and didn’t know if they were now bound by these terms and conditions.
- You don’t have to accept these terms and conditions
- You can flag terms and conditions that you don’t agree to
- Purchase orders are not a done deal
- Usually, these scenarios will pass most of the risk onto you
So how do you avoid this?
WHAT CAN YOU CHANGE?!
- When they issue a contract you don’t have to sign it
- Always review the Terms and Conditions
- Make sure you discuss your contracts with your insurance brokers
- Know what RISKS you refuse to sign up for
- NEGOTIATE
ALWAYS MAKE SURE YOU’VE CLEARED UP ANY CONTRACTUAL ISSUES BEFORE YOU START WORK.
Here are some tips to navigate the dialogue between terms and conditions.
1) You have to have a set of commercial principles because they help guide you and your clients about what you will sign up for and what you won’t sign up for.
- I.e. payment terms, limitation of liability, defects liability, warranty period, etc.
2) In your proposal state that your price is based on the acceptance of your commercial principles.
Outlining this EARLY gives you a great platform to start fair negotiations.
We want you to be the MOST SUCCESSFUL you can possibly be. That’s why we put together content with tips and advice that is tried and tested.
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.
