Here's the 10th newsletter in the Business Management series that will take you through aspects of managing (business, financial, jobs, labor) giving you insights and techniques to help you build a better business.

The following content is extracted from Mike Holt's Business Management Skills Workbook.

Don’t accept a job without a contract. To do so would be to sow the seeds of controversy, misunderstanding, argument, delayed payments, and erosion of the customer/contractor relationship.

Usually the price and other conditions of a job are agreed on by the act of your presenting a contract, and an authorized representative of the customer signing it. Never begin work before a contract has been signed and is in your possession. Review in detail yourself all contracts presented to your company. Large developers and general contractors have their own contracts that are biased in their favor, but that doesn’t mean that you have to sign it as is.

If you’re required to sign their contract form, consider striking out clauses that you object to. But, before you begin to do so, ask your lawyer to explain things such as contract terms, acceptance and rejections. Then, prepare to negotiate, and defend your strikeouts. You may have to inflate your price to accommodate special requirements that they insist on. You can prepare a proposal with your own conditions, and make it an addendum to the customer’s contract. Prepare a checklist indicating whether you or the customer is responsible for each service.

Anything in the gray area of doubt, such as who pays for temporary power, who patches holes, whether special bonding or insurance is required, etc., should be discussed and agreed on. Be sure that you investigate and know the requirements for licensing, insurance and permitting, as well as the local building codes. Not knowing can be expensive, and not complying can be more expensive.

Contracts, both verbal and written are legal in nature. Know what you’re signing and agreeing to!

We'd love to hear from you about this series, and the ways you're using it. Send us your comments and feedback by clicking on Post a Comment below. Look out for the next part in this series a month from now, and please share with your colleagues.

This content is extracted from Mike Holt's Business Management Skills book. If you have enjoyed this newsletter, you can get the full content here.