How to write a GREAT Service Contract

So, you found your ideal customers. You are responsive to their needs and concerns, figured out how to locate, and target the people who patronize your business. Now, your first few services orders are coming in and you’ve got jobs to perform. In most instances, it’s imperative to have some kind of written agreement between you and your clients. Your clients will have a wide spectrum of unique needs and wants, and the problems and challenges you face will be every bit as varied.

It’s important to know how to write a solid, legally-binding contract that will clearly explain, define what needs to be done, and every bit of minutiae related to the job. Your clients may have differing expectations than you do about what they want done, how much they want to pay, when they want it done, and so on. These three steps below will help you approach these questions in a logical manner and construct contracts that will leave little room for misunderstandings.

1) Be clear and concise on services you are providing.

It’s important to have a short paragraph or two giving out a broad outline of the parties involved, the services that will be provided, the time tables, pricing ranges, and any relevant facts relating to the work being rendered. It allows both parties to understand the nature of the contract, the terms, and conditions being set forth. It also serves as a way to tie in a customer’s unique needs to the services your company provides.

Furthermore, specify, specify, specify. Vague and non-descriptive language allows for a number of potentially conflicting interpretations on what services will be rendered and how it will be delivered. It’s important to be as clear and concise as possible to avoid any potential issues or legal disputes between you and your client. As an example, some jobs may require time and material in addition to the services to be completed (e.g travel, transportation, etc). Make sure both parties know who is responsible for providing those services, as you don’t want there to be a misunderstanding as to who is responsible for what.

2) Include the duration of your contract.

This is important, and not just for liability reasons. For instance, if a project extends past the agreed-upon deadline, it can result in a cost overrun or low-quality work and poor customer service for who you are performing the service for. This does not take into account changes or revisions that could occur during the completion of the project. It’s important to manage a customer’s expectation on what you can or can not do within a certain period of time.

Make sure that all parties have an understanding of how long the contract should last for. For example, if your client expects a job to be completed in a week, but you know it will likely take at least two. It’s good to explain to a client all the task or action items associated with a particular task so they understand what the process is.

Once both parties have come to an agreement as to how long the job is expected to last for, it’s good to have a have a tentative time line so things are clear. It’s beneficial on both sides so expectations are managed and keeps an open relationship with the customer. You as a business owner is given time to complete the work and enforce the time line as well as the client can ask for the proper recourse if the job runs past the agreed-upon deadline.

3) Include an agreement on what the expectations are.

Before you have written the contract out, sit down and negotiate all the terms. Agree upon concrete dates, an exact or accurate price range, payment options, the approval processes, fully delineate what each party is responsible for and can expect. Outline everything that is required to complete this job, as well as which parties are responsible for these needs. Make sure you explain clearly what you intend to do and how you will accomplish it. Be sure to include an exit strategy for when the job has been successfully completed.

Should the client have any further concerns or inquiries, be sure to include contact information that they can use. Whether it consists of an email, a phone number or some other form of information, you want to make sure that the client can access you easily enough, should there be any section that is not clear or if they have any unresolved questions.

These three steps do not explain every little detail, but they serve as an effective primer for those new to the art of writing a legally-binding contract. And of course, don’t forget to follow up with your clients after the job is completed. Even if you have finished the job and have fulfilled your duties and responsibilities, it means a lot to your clients when you communicate with them after the fact and gauge their satisfaction – when you show that you care about them, they will be inclined to give you their business again.

Source: How to write a GREAT Service Contract

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