How to avoid costly contract mistakes

Every business owner wishes they had more time. There’s so much to do, especially when you’re starting out. There’s the hiring of a new team, marketing plans, products launches and all while someone is keeping an eye on the purse strings.

In a fast-paced environment, it’s so easy to overlook a detail that many be worth a lot of time. There are lots of contract mistakes you can avoid when it comes to clients and suppliers. See how you can identify them here…

Not taking accurate notes

When all hands are on deck, deadlines are looming and the pressure is on, things happen fast. Then there’s changing details or shifts of meetings which may confuse things further. Perhaps people are making changes to shift patterns via text or updating how a building project is going via Whatsapp. There may be many people involved in these chats.

Laying out what was agreed in one document saves a lot of heartache later down the line. You cannot rely on your memory in a growing business environment. Not documenting accurately is one of the most common contract mistakes you can make. Avoid this risk for your business by setting up a clearly detailed contract to fully document all the terms, conditions, and include who is responsible for what.

Standardising

Choices are always great. Everyone likes a menu with variety.

However when it comes to business, keep it simple. Stick to standardising systems, processes, and paperwork to save time. Readymade forms and templates are faster than starting from scratch. With this in mind, delegation is easier and oversight is prevented. Nothing can get left out, overlooked, or forgotten if a one-stop shop system is used.

Sign and bind

Not getting a signature is the biggest contract mistake you may be making. Anytime you enter into a business relationship with a client, sub-contractor, or supplier, be sure to close it with a proper contract.

Without one that is signed, your contract is not legally binding. A scruffy note, an email and a verbal chat are not good enough. The best thing to protect your company and minimise risk in a business relationship is to get legal advice on contract preparation and ensure it is legally binding.