Steps Colorado Businesses Can Take to Create Successful Client Contracts

If your business relies on building trusted relationships with clients, you are probably aware of the importance of implementing client contracts to protect your business. Although new businesses may assume that client contracts are inherently complex and full of technical legal jargon, these documents should actually be relatively simple, clear, and straightforward. Essentially, they should define the nature and scope of your working relationship and guide you through your work together. So, what should you include in a client contract? Here are some basic recommendations.

Define the Terms & Scope of the Project

The most important aspect of an effective client contract is specifying each aspect of the project. You’ll want to identify the roles and responsibilities of each party, the general timeline of events, and other relevant details that will provide a clear overview of the expectations on all sides. While it may feel like overkill to get into each specific detail, setting clear guidelines is essential in giving yourselves the support you need to proceed smoothly and efficiently.

Include Terms of Payment

One of the biggest areas of potential conflict involves payment. Without firmly defined rates, deliverables, billing and payment schedules, or acceptable payment methods, disputes can easily arise. Make sure to include specific details about the agreed-upon rate, how one party will bill the other and when, and how long it will take for the party to process the payment. The more transparent you can be about these elements when creating a client contract, the less likely it will be that you will encounter difficulties later on.

Address Potential Legal Challenges

Although it can feel pessimistic to include provisions for the project’s failure, your client contract should fully explore and articulate what steps need to be taken in the event of the termination or breach of contract. Make sure to identify what happens if the client pulls out of the contract before the project is completed. Will you still receive compensation for the work you’ve already performed for the client, even if they terminate the contract? Additionally, address how contract disputes will be handled by including a provision like an arbitration clause in the contract. Should a dispute arise at some point, your client contract will provide a road map of how to proceed.

Now is a great time to review or create successful client contracts that sufficiently protect the needs of your Colorado business. Call Judex Law, LLC at (303) 523-4022 to discuss your goals with a trusted Broomfield business attorney who is committed to delivering personalized legal solutions.

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