When is a written contract is essential?

It is always better to have your contract in writing, no matter how small the job is. Any contract that involves a significant risk to your business should always be carefully considered and put in writing. This is advisable even if it means delaying the start of the work. A written contract is essential:

• When the contract price is large enough to make or break your business if you don’t get paid
• Where there are quality requirements, specifications or specific materials that must be used
• Where there is some doubt that the other part may have enough money to pay you
• When you must have certain types of insurance for the type of work you are doing
• Where the contract contains essential terms, such as a critical date for the completion of the work before payment can be made
• Where you or the other parties need to keep certain information confidential
• When it is required by your insurance company for professional indemnity purposes
• Where there is a legal obligation to have a written contract under legislation.