A well-crafted contract serves as the cornerstone for successful collaborations and agreements. Establishing a solid foundation will support clarity, prevent misunderstandings, and provide a roadmap for all parties involved in the project, especially for managing variations, disputes and the provision of third-party services.
Here are some essential elements that contribute to the foundations of a good contract:
The clarity and conciseness of appropriate terms and conditions sets the tone for a good contract. These should outline the rights, responsibilities, and obligations of each party involved. Ambiguities or archaic language can lead to disputes and complications, so it is part of good risk management to define expectations with precision.
Templates for terms and conditions are quite common and whilst they can be helpful, they can also generate a false sense of security so they should be used with great care. If you are minded to use a template then you should highlight clearly any clauses that must not be changed or removed. If you need to adapt aspects of your document for a particular project or client, then it is good practice, and we recommend, that you have those changes reviewed by a legal professional, such as Unity Legal Solutions to ensure you haven’t inadvertently undermined the effectiveness of your terms and conditions.
Anticipating potential conflicts and establishing a clear dispute resolution mechanism is sensible and can be addressed by including a dispute resolution clause that specifies the procedures to be followed in case disagreements arise. Those procedures can include negotiation, mediation, arbitration, or litigation. This is a proactive approach and can save time, resources, and maintain the business relationship. It gives everyone a road map for dealing with the unexpected. It can be very tempting to put the dispute resolution clause at the end of the contract. However, and perhaps counter-intuitively, the placement of a dispute resolution clause near the top of a contract is strategic, effective and encourages collaboration. This pre-emptive information helps set expectations, allowing parties to understand the mechanisms for resolving disagreements before delving into the specific terms of the agreement. It can also deal with the differences between your services and third-party suppliers which is often overlooked.
Using plain and straightforward language ensures that all parties can easily understand the terms and demonstrate transparency thereby reducing the risk of misinterpretation.
Organising the contract in a logical and structured manner enhances its readability. Include headings, subheadings, and a table of contents to allow parties to easily navigate the document. A well-organised contract minimises the chances of overlooking significant details and facilitates quick reference to specific sections. If you use Adobe Acrobat, or similar software, then the table of contents will be activated with live links to the relevant sections. Furthermore, a table of contents gives a sense of completeness and signals a structure which is easy to follow.
For contracts involving ongoing services or projects, defining performance metrics and milestones provides a measurable framework for success. This not only sets expectations but also allows for periodic evaluations and adjustments, ensuring that both parties stay on track towards achieving their respective objectives.
In the digital age, incorporating electronic signatures adds efficiency and security to the contracting process. Digital signing platforms offer a legally recognised and secure method for parties to authenticate their agreement, reducing the need for physical paperwork and expediting the execution of contracts. They also provide a record of amendments and variations.
Including a provision about the right to use photographs of the finished project in social media and other publications is a specific but important aspect of the designer/client relationship. Discussing it and including a specific clause at the beginning of the relationship signals consultation and consideration to the client and manages expectations of both the design professional and their client.
There are many other aspects to drafting a good contract. Some might be obvious, and some might be new to you. It is the combination of good drafting and coherent terms appropriate to the project or client, that makes the difference and that is rarely a DIY project.
For more information about how we can support you in your business, please contact us.
About Unity Legal Solutions
Unity Legal Solutions is not a regulated firm of solicitors although our people are mainly legal professionals. We provide initial advice and, if necessary, open the door to the legal market and help clients navigate the way forward to give them the best available options. We advise on disputes, commercial contracts, company matters and intellectual property which is so important to SBID members. We also offer a comprehensive mediation service in order to resolve disputes before they get out of hand. Our aim is take the worry out of facing legal issues by being clear, commercial, collaborative and friendly!
If you’d like to feature your news or stories on SBID.org, get in touch to find out more.
If you’d like to become SBID Accredited, click here for more information.
Unity Legal Solutions invite you to an illuminating CPD presentation designed to empower you with strategies and approaches to manage conflicts before they become disputes. Join us for an engaging session where we will look at the current landscape for dealing with claims, dispel some unhelpful myths and share tips for managing risks in your dynamic field.
As interior designers, you craft spaces that tell stories and evoke emotions. Yet, behind the scenes, the potential for disagreements is always present. This CPD aims to equip you with knowledge and insights to navigate these challenges. From contract intricacies to project hiccups, discover how mediation can be your secret ingredient for a harmonious design journey.
Expert speakers from Unity, will guide you through real-world scenarios, sharing strategies that will support your professional journey so that you can spend more time focused on your design skills. Discover how mediation can not only resolve disputes but elevate your practice and support your brand. Learn about the changes in the Small Claims procedure and understand the unique approach that Unity offers to our membership.
Don’t just design spaces; design resolutions. It’s time to sparkle with confidence in the art of dispute resolution. Click here to learn more about this CPD activity.
SBID Members earn 4 x CPD Points for attending!
With a struggling economy and wars across the world, it is not difficult to be overwhelmed by the aggressive and adversarial nature of the news. Litigation feeds into that culture. You only have to look at the escalating numbers of claims at all levels of value and the backlogs in the courts to see the evidence of that. If your counterpart has deep pockets, then the court process can be an expensive tactic for delaying the inevitable. Sometimes, litigation is the right course of action, but it should be the last resort and it can be an informed choice.
One feature of a challenging economy is an underlying resistance to settling claims. It is well known in the construction sector that claims are assets, and often appear on the balance sheet. This is a consideration for sub-contractors as they can easily be caught up in the domino effect of strategies adopted by contractors higher up the supply chain. Consequently, and despite Herculean efforts on the part of industry bodies, the exposure on payment for sub-contractors remains a real and constant risk.
That’s OK for those who have deep pockets or can pass off the responsibility to others to manage a claim or move the costs to another ‘budget’. It takes time to manage a claim and it costs money to issue one. For a claim between say £5,000 and £10,000 the court fee is £455 and if your case goes to trial, there will be an additional hearing fee of £346.
Preventing disputes rather than resorting to litigation offers many advantages that can outweigh the short-term satisfaction of ‘winning’.
First, preventing disputes is a proactive and cost-effective approach, saving time and resources that would otherwise be consumed in protracted legal battles. And they are protracted. The current average time for dealing with a small claim (up to £10,000) which is defended and goes to trial is 55.6 weeks. That can be longer in London and the South East of England. However, by addressing potential issues early on, businesses can avoid disruption and financial strain associated with legal proceedings.
Litigation often leaves a lasting impact on interpersonal dynamics, causing rifts that are challenging if not impossible to mend. Emphasising preventive measures, such as clear contractual agreements and terms and negotiated dispute resolution mechanisms, allows parties to preserve working relationships, fostering a conducive environment for future collaboration. After a client has failed to pay you, you may not want to have a relationship in the future, but it is better to have a choice and having that choice shows strength.
Engaging in lengthy legal battles can tarnish the public perception of businesses and individuals. Preventive measures, on the other hand, showcase a commitment to ethical and responsible business practices, enhancing reputational integrity.
Furthermore, preventing disputes aligns with the evolving landscape of corporate social responsibility. Businesses that prioritise proactive dispute resolution demonstrate a commitment to ethical conduct and contribute to a more sustainable and socially responsible business environment. If you are already making social responsibility, including environmental responsibility, a feature of your business practice, then adding clear dispute resolution processes is a matter of consistency and showcasing them sends a message to customers and suppliers that you are walking your talk. A clear commitment to ethical business practices, fosters a healthier and more resilient business ecosystem essential to managing the risks associated with a difficult economy.
So what can you do to shift the scales of justice in your favour? Please join Unity Legal Solutions for the webinar “The Art of Getting Paid” for tips and strategies to support and enhance your brand and practice.
Register to attend for free here!
Amanda Bucklow, Mediator and Consultant at Unity Legal Solutions has given her insights into the interior design industry from a legal perspective.
Unity Legal Solutions offers a portal into the legal services market which is often a minefield, and we provide expert guidance on which services and approaches might suit a client’s business goals. Unlike traditional legal firms, we don’t represent clients in court, hold money for clients or undertake services like conveyancing. And because we don’t ‘act’ for clients we are better placed to guide them in choosing the right approach for their case.
A good deal of our work is concerned with dispute resolution. That includes non-payment of fees which may be withheld due to dissatisfaction with performance, whether that is real or perceived. But there are other areas of business where clients might need legal support to resolve conflicts arising from doing business and running a practice. In addition to dispute resolution, we can assist with many other aspects of business which include contact drafting, collaboration and partnership agreements, trademark or copyright infringement, project optimisation, and buying or selling businesses.
We have a practical and proactive approach to our work. We listen. We take on board our clients’ knowledge of the detail and to that we bring a clarifying lens, expertise and creativity. That makes for a very powerful partnership and springboard for delivering better outcomes.
Interior designers face many challenges as part of their business and not just disputes. Sometimes the challenges can be within their practice, for example relationships with employees, business partners or suppliers. Those challenges have a ripple effect with consequences for their operations, client relationships, and overall reputation. For a sector that relies on referrals to sustain their business, this is a strong dynamic which requires careful consideration and is further affected by the perceived power balance between designer and client.
Designers can only sell their time once so getting paid in full and on time is fundamental to profitability. The financial strain of dealing with non-payment is a hamster wheel of distraction and stress. Unity can provide economic advice, strategies, and interventions to help mitigate the risks of disputes arising and if they do arise, we can support the designer in dealing with them cost-effectively.
Unity Legal Solutions is a portal to a wide range of services, and we can recommend the most suitable ones for the circumstances. Additionally, we have access to trusted professionals when the need arises to act.
Reviewing contracts early can pinpoint ambiguities that might trigger disagreements about the scope of work. Similarly, achieving clarity regarding fees, payment schedules, and processes for variations can enhance the effectiveness of the designer’s administration. Designers often take these aspects of the client/designer relationship for granted and seldom review them until issues arise. Disputes frequently arise from mismatched expectations, communication breakdowns, and unforeseen delays. Contracts lacking specificity or failing to address potential issues may create the conditions for disputes. We can add value by addressing those subjects proactively and not just with clients but with their own suppliers.
We offer contract drafting to ensure that design contracts provide a route map through a project, and that designer and client are fully aware of their respective obligations. As a portal to legal services, we can provide preliminary advice on any problems that have arisen during a contract. We would always seek to guide members towards resolving disputes by negotiation and sometimes they might need help with that from an expert. Our mediation service aims to resolve disputes between designers and their clients and offers the best chance of preserving the relationships involved.
And we can source the best possible advice from solicitors and barristers should further legal assistance be appropriate.
Developing our partnership with SBID is a significant highlight and we believe that our innovative approach is valuable for the sector. We have plans for several supporting services which will benefit the membership and we look forward to fine tuning those in response to feedback and information received from members.
2023 has been a successful year for us. We have provided consultancy on interesting cases with unusual challenges for the clients leading to successful outcomes. There are more in the pipeline.
We are developing a programme on essential skills and approaches which support designers in managing disputes. There will be opportunities to strengthen negotiation skills, to build capacity and achieve their business goals. Our first free session will be early in the New Year, and we have planned a dispute resolution surgery where my colleague Roger Billins and I will be online to answer questions and bring participants up to date on recent changes in legislation. There will be more structured training workshops which will be available for a modest charge.
We offer practical risk assessments and develop options for addressing current issues and challenges which underpin growth and success. Members will consistently gain valuable insights that they can apply to their current and future projects.
Join SBID
Find out more about our flexible membership structure.
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
By subscribing, you agree to be added to SBID’s mailing list. As an industry’s standard bearer organisation, we strive to bring you the most up to date news and access to exclusive industry content through our various newsletters.