Claric Legal Services
Winning a new client is always good news, but don't let the excitement of securing the work distract you from the contract you're signing. Many outsourcing providers simply accept their client's standard terms, even though they're usually drafted to protect the client rather than the supplier. Here are eight practical tips to help protect your business before you sign.
Clearly define the scope of your services
Be specific about exactly what is and isn't included. A well-defined scope helps prevent misunderstandings and reduces the risk of "just one more thing" becoming part of the service without additional payment.
Have a process for agreeing changes
Client requirements often evolve. Your agreement should explain how additional work will be approved, priced and documented before it is carried out.
Be clear about where liability lies
Check that the agreement fairly allocates risk between both parties. Liability should be proportionate to the services you're providing and should not expose your business to unlimited financial risk.
Protect your intellectual property
Your templates, systems, processes, software and know-how are valuable business assets. Make sure the agreement clearly states what belongs to you, what is licensed to the client and who owns any bespoke developments.
Agree clear payment terms
Set out when invoices are due, what happens if payment is late, whether you can suspend services for non-payment and how additional work will be charged.
Protect confidential information
Both parties should understand how confidential information will be handled during the contract and after it ends.
Plan for the end of the relationship
Every outsourcing arrangement will eventually come to an end. Your agreement should cover notice periods, handover arrangements, return of client information, deletion of confidential data and final payments.
Don't just sign the client's contract
A contract should protect both parties. Legal advice can help identify potential risks and ensure the agreement reflects the commercial reality of the relationship.
A well-drafted outsourcing agreement isn't about expecting problems; it's about giving both parties clarity, certainty and confidence from the outset. It helps avoid potential costly disputes and protect the outsourcing business you've worked hard to build.
If you’d like to discuss outsourcing agreements, please reach out for a no obligation chat. It would be great to hear from you.
📞Contact Richard Jenkins on 024 7698 0613 or [email protected]
