WE MAKE YOUR CONTRACTS WORK FOR YOU
The draft terms and conditions floated in the tender or bid or a draft agreement have several complications. If there is no due attention taken on those terms and conditions, there is every chance that either party may incur losses.
Let us examine the important clauses that may affect the profits for either party:
- The scope of work: The micro-level examination of the scope of work is very essential. There is every chance after award of work, new areas of works may arise which parties may not be aware at the initial stage as it’s not mentioned in detail in their contracts. Describing the scope of work in your contract in micro level helps you to avoid such circumstances.
- Extra Works or Variation Clause: There may be chances that in your contract, the scope of work increases or decreases. This increase or decrease leads to financial impact in your contracts. Therefore, if there is a procedure laid down in your contract mentioning in detail about the details of such extra works, costs and time impact on such extra works along with the details for an issuance of variation order in your contract helps to avoid such surprises or losses on account of extra works that may arise in your contracts.
- Price Variation Clause: If there is no price variation clause in the contract and if the prices for materials or labor increases or decreases, such increase or decrease in costs will impact in increase or decrease in contract value of your contract. In some contracts, price variation formulas will be available, but, the formula may not compensate all the cost increase for such materials. Careful examination on this clause and thereby considering some contingency costs in your contract value helps to overcome such increase or decrease in the contract value.
- Change in Law: On execution of the contract, if there is an increase or decrease in costs due to change in law, that costs are to be borne by either party and this may impact the contract value. If there is a proper change in law clause in your contract, the cost increase or decrease can be claimed and this helps to maintain the contract value by either party in your contract as planned.
- Limitation of Liability: Liability of either party to be limited as there is a chance at the later stage the liability can go more than the contract value of your contract. Limiting your liability is very much required in your contract to avoid extra costs that can incur on this account.
- Consequential Losses: Losses that may occur beyond the control of either party due to indirect or consequential losses. There should be a clear understanding in your contract on consequential losses to avoid surprises.
- Force Majeure and Insurance: Force Majeure events occur beyond the control of either party. On the occurrence of these events, there may be some loss that may incur to either party. Preplanning on the consequences of force majeure events is very much essential. Obtaining insurance policy on Force Majeure events will reduce the losses to either party.
- Delays in the project completion: Generally, this will be a crucial aspect for several projects for several contractors where the projects will land up in losses. Clear listing down the obligations of the parties at the time of execution of the project and also agreeing on the damages or penalties in your contract on the delays by either party supports you to mitigate losses.
- Appropriate care needs to be taken in your contract terms and conditions as they may put either party in losses.
WHAT JUSTACONTRACT.COM DOES IN PRECONTRACTS SUPPORT?
- JUSTACONTRACT.COM reviews your contract in detail. Provide you the statement which consists of a summary of important clauses. This summary helps to know the surprises that may occur in your contract and enable you to take necessary precautions to avoid such surprises or losses.
- JUSTACONTRACT.COM highlights the risk clauses which needs due attention. It also provides you the reasonable clause which helps the parties to solve the future problems that may arise in your contracts.
- If required, JUSTACONTRACT.COM also highlights on the technicality on terms and conditions, law and judicial position on important aspects of your terms and conditions.
- JUSTACONTRACT.COM provides pre-bid queries. Support you in negotiation with your customer or other party for appropriate terms and conditions and support you in executing the agreement.
- After execution of your agreement, JUSTACONTRACT.COM provides you the important do’s & don’t statement, alarm statement as required which is to be followed strictly by you as per your contract terms and conditions.
- If required, JUSTACONTRACT.COM conducts an introduction session with your Team on the contract do’s and don’t’s statement and important terms and conditions as well as the precautions that are to be implemented in the execution stage.
- JUSTACONTRACT.COM imparts knowledge and educates to avoid such exigencies which may trigger into losses.