IT agencies lose time and money on their projects because of this reason.a

I've seen so many software and web development agencies make this mistake.

They start a project with just a few oral and email discussions. 

They discuss the scope over call, the customer releases the payment, and work is started with a rough timeline.

And this is where the chances of disputes become sky-high.

It’s not surprising how most such disputes follow a similar pattern:

-> The customer will often complain that the developer is taking longer than what the contract provided to deliver.

It eventually ends up being more expensive and less effective than what was contracted for.

-> The developer on the other hand complains that the customer unreasonably changed the specification.

Or failed to cooperate or provide information to the developer.

The consumer is in a difficult position because changing service provider mid-way can involve further delays and hassle.

And, the last thing that anyone wants is a long, drawn-out, and costly court settlement.

Now remember - no written contract can 100% prevent disputes.

But they can certainly make sure your chances of disputes drop.

Here are 2 ways how you can do this:

1) Avoid Ambiguity

Not everything is usually discussed over email and the parties will not stick to the terms orally discussed.

Here are a few points that I always focus on in contracts:

1) Scope of Work for the Project

2) Change control mechanism

3) Any Payment Milestones

4) Delivery Times

5) How changes in Timelines are handled

6) IP Ownership and how it is assigned to the other party

7) Liability of Each Party

All these points should be considered in a Contract.

These all are very subjective and should be determined in advance.

They will help you avoid any misunderstandings and also nudge the parties to do what they’ve agreed.

2) Quicker and Easier Resolution

You don't want the court to get involved in any project.

Because if the terms are not specified in the Contract.

And the matter is dragged into the court.

Then it is up to the judge’s discretion to interpret the terms or intent of the parties.

And, there’s no certainty that the court’s interpretation will be the same as what the parties had agreed earlier.

This is the reason why Writing Terms makes the outcome much more predictable.

Because the court generally won’t interfere with the contract terms if they are clear enough.

Then again, you can also have other means of resolving a dispute, like negotiations or arbitration!

That's it.

Now if you avoid taking these 2 steps, then the chances of the project going sideways rise.

And as an agency or a company, you don't want that.

Mainly because you'd have to invest more time or more money into finishing the project.

And an unhappy customer typically leaves a bad review.

So stay clear from the start and stay safe!

P.S. How do you make sure that a project always gets delivered on time?

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