Subcontract

A work contract is a civil law type contract and provides for the performance of work by one party (contractor) to the order of the other party (customer) for a certain fee. In order for such an agreement to work for you and ensure high-quality regulation of business relations with the counterparty, you need to ensure that it is drafted correctly. The lawyers of the Prikhodko&Partners Law Office, who specialize in this category of client requests, can help with this. So, let’s look at what the features of a contract are and how we can help you in the process of drawing it up.

What are the essential terms of a contract?

The main conditions for a contract of this type are the indication of the subject and price. The subject is the specific type of work that must be performed to receive the stipulated payment. As for the deadline, it is not necessary to indicate it, but we recommend specifying it. And behind this there is a completely understandable logic, based on a deep understanding of the nature of civil law relations and possible scenarios.

For example, consider a situation where you enter into a contract with a contractor who is a professional and has many good reviews. However, such people or enterprises often have a huge flow of clients, so they can postpone work on one order if another one is received – more promising for them or voluminous. And then you have to wait for some time for the contractor to get to work. This creates tension – especially when your business depends on the speed of completion of work under such a contract. In order not to become a hostage to the situation, you should immediately indicate in the document not only its subject and price, but also the period allotted for completing the work.

Now let’s look at an example when you or your company, on the contrary, is in the role of a contractor. Deadlines will also be important for you, but here we will talk about payment terms. It is also a fairly common situation when the customer of the work, having received the desired result, delays the moment of payment. To avoid this, all these aspects should be provided for in the text of the contract and a deadline should be set for both the completion of work and payment. This approach will help protect both parties from violating agreements.

Difference between service agreements and contracts

People often confuse these two agreements, but there is one significant difference between them. In a service agreement, the emphasis is on the process, while in a contract agreement, the emphasis is on the result. It is difficult to say unequivocally which option will be better, because everything depends on the specifics of cooperation. For example, when it comes to a material result, it can be measured. But when we are talking about an intangible result (for example, holding an event or providing tutoring services), then a contract agreement will not work and it would be better to choose a service agreement. In both of these options, the law firm Prikhodko&Partners is ready to provide quality services.

Possibility to change price

Sometimes the contract indicates a fixed price, sometimes an approximate price. Here, too, there is no single solution as to what will be better in a particular case. It is important that the content of the agreement reflects the specifics of cooperation. For example, in some cases, it is impossible to determine the exact price in advance so that it is fair. This applies to situations where it is difficult to understand exactly how much work will be required. For example, during a major renovation of a premises, unexpected factors may arise. At the same time, for a fixed price it is also possible to provide for the possibility of adjustment in case of emergency circumstances.

How is the fulfillment of obligations ensured?

Current legislation provides various tools to ensure compliance with obligations. This may be a surety, guarantee, penalty, retention or deposit. When consulting clients, the lawyers of the Prikhodko&Partners law office answer in detail the question of which of the listed options will be best for you.

Sometimes people think that they can conclude an agreement on their own based on templates that are easy to find publicly available on the Internet. However, such an agreement will not provide for the specifics of cooperation between specific counterparties.

So in case of disputes between them, it cannot become a truly reliable tool for legal protection. To avoid such a problem, cooperate with reliable lawyers who will develop the text of the contract for you as carefully and competently as possible.