To contract ….. or not!
What do you think of when you see the word ‘contract’?
Unfortunately, through experience, people have come to associate the word ‘contract’ with other words beginning with ‘C’ – ‘confusing’, ‘complex’, ‘combative’ and ‘costly’. However, the alternative meaning of the word is as a verb meaning to shorten, so why can’t contracts be ‘concise’?
Good News – they can! Further, if they are drafted by someone who takes the time and trouble to undertstand your business needs, they can also be ‘clear’, ‘collaborative’ and ‘cheaper’.
If you can’t understand your contracts, then it is not unreasonable to assume that yor clients won’t be able to either – which makes the whole exercise pretty pointless. Also, money spent on preventing disputes is worth twice that spent on helping you in court – by which time you will already have lost your customer, potentially your reputation, and probaby some of your hair along the way.
This approach also applies to other documents involved in the contractual process. Here are 2 clauses, the first of which is taken from a real-life tender I reviewed – complete with typos. See which you prefer.
The confusing, complex, combative and (probably) costly one:
“The tender remains open for 30 days unless previously withdrawn. Thereafter, the tender is subject to confirmation or adjustment by the contractor/company. Acceptance of the Tender/Quotation/Estimate by the customer is deemed that the customer accepts the Terms & Conditions of Trading by the contractor and supersedes any Terms & Conditions as laid down by the customer, unless agreed upon in writing by the contracctor within 30 days of the customer accepting the tender.”
Or the clear, concise, collaborative (and almost certainly cheaper) one:
“If you wish to accept this tender, please do so by [insert dae]. If we wish to withdraw the offer to tender before that date, or agree to extend the date by which you may accept, we will notify you in writing.
Please note that by accepting the tender, you will also be agreeing to our Terms and Conditions (attached), which will apply in place of any terms and conditions of your own in respect of the work to be undertaken.”
“Res ipsa loquitor” as my old Latin teacher used to say – a no-brainer!
Why not make your resolution for 2010 to dump your confusing, complex, combative and costly documentation – and replace it with some which is more appropriate to business in the 21st century?
Happy New Year!!