10 Questions To Ask Yourself about Your Contracts

I published my first blog post back in 2019, when as a brand new business owner I wrote about the?5 questions every small business owner should ask when looking for a lawyer.

It probably won’t surprise you to learn that the answer to all 5 questions was “SoundLegal is the absolute best choice for you and your business”???

I still agree with the points I made in that post. But, I’ve written a lot more content since then, and most of it is about construction, engineering and consulting contracts rather than what a great lawyer I am.??

Today I’m doing a round-up in case you’re a newer subscriber or there’s something you haven’t noticed before.

Rather than giving you a list of boring old links, here are 10 questions that are answered by my posts, to put some flesh on the bones of why you should go back and read these articles. Enjoy!

1. DO I NEED A CONTRACT FOR MY BUSINESS?

Yes. Enough said.

• But my services are really low risk…. WHY do I need a contract?
• 3 Reasons Subcontractors should attach T&CS to a quotation

Interested in what we say about what the contract should look like?

• SoundLegal Roadmap for Commercial Contracts?Part 1?and?Part 2

2.?SHOULD I WRITE MY OWN T&Cs?

Spoiler alert:?NO, you shouldn’t write your own T&Cs. Well, unless you’re a contract lawyer, then it’s OK. Just to note though: in my experience, bush lawyers generally do not make good contract lawyers.

• Why would you pay a lawyer to draft your business contract?
• BONUS: I also filmed a video about this, in cloudy but beautiful Walpole. Watch it?here?(it’s less than 3 minutes)

PS: Drafting contracts is our absolute favourite thing to do at SoundLegal :)

3. I’VE DECIDED TO REVIEW THIS CONTRACT THAT THE OTHER SIDE SENT TO ME. WHAT AM I LOOKING FOR?

First of all, well done to you for being better than so many business owners and actually reading your contract. Gold star for you. Plus, reading your contract usually means you’ll get better project outcomes and make more money. Win-win.

• 5 common contract risks in construction and engineering projects

4. SO I READ THE CONTRACT. SHOULD I TRY TO NEGOTIATE BETTER TERMS?

Another spoiler alert:?YES, yes you should. For one thing, if you’re a supplier, there’s never been a better time to rebalance the allocation of risk that tends to be disproportionately shovelled towards you. For another, the other party EXPECTS you to want some changes to the contract. Don’t miss this opportunity to get a better deal.

I’d also love to share my thoughts about why you should use a clarification schedule to do this, and if you do, what to put in there.

• Why you should negotiate a better contract
• What to put in a clarification schedule

5. I DON’T HAVE TIME TO REVIEW THIS CONTRACT. SHOULD I GET SOUNDLEGAL TO LOOK AT IT?

I’m glad you asked. SoundLegal will review your contract, give you practical advice and develop a bid-ready clarification schedule for you to send back to the other side. All of this for a pre-agreed fixed fee, so there are no surprises about price. The cost of a contract review starts at $800 plus GST (for short contracts) and goes upwards from there depending on how long/tricky the contract is.

• 4 reasons you need a tender stage contract review
• Reduce legal costs and contract administration burdens

6. HOW CAN I USE THE PAYMENT CLAUSE TO IMPROVE CASHFLOW IN MY BUSINESS?

Cash is king. If you can make cash flow into your business quicker than it flows out and improve your margin, you’ll be making a profit. You can use the payment clauses in your contract to help you do it. Happy days.

• Payment clauses
• What you need to know about a set-off clause

7. WHAT ARE THESE “AUSTRALIAN STANDARD” CONTRACTS THAT I HEAR PEOPLE COMPLAINING ABOUT?

Yes, they’re old. Yes, people make too many amendments. But they are workhorses and they’re doing the job for the majority of large commercial and public infrastructure construction projects around Australia.

• What is an Australian Standard contract?

8. WHAT RISKS SHOULD I LOOK OUT FOR IN VARIATION CLAUSES?

The world is an imperfect place and change is inevitable, including on construction projects. However, poor variation management is thought to be one of the biggest causes of margin erosion. It doesn’t have to be that way.

• Managing change in construction contracts
• Prefer to watch it? No worries:?4 risks to watch out for in variation clauses

9. THIS PROJECT/SUPPLIER/SITUATION IS AN ABSOLUTE TURKEY. CAN I GET OUT OF IT?

Maybe. It depends on what the termination clause says.

• How do I get out of my contract

10. HOW DO I GET SOUNDLEGAL’S HELP?

Contract questions keeping you awake at night? Hit reply or book online below, and let us know what’s worrying you. We’d love to take it off your mind.

Get in touch?for a free 15 minute discovery call.

About Gemma

I help construction, engineering and consulting businesses create and negotiate clear contracts so they can make more profit and achieve great project outcomes.

I founded?SoundLegal?to help SMEs in the engineering, construction, consulting and light industrial sectors manage their risk to support business growth, by finding practical, common sense solutions to contractual and other legal challenges.

Subscribe to the SoundLegal newsletter “No Jargon”?to hear monthly business insights from me.