Service provider-client relationship: how to secure the contract

Relationships between service providers and clients are often a source of disputes, as their respective obligations are sometimes poorly defined. Here are some practical steps to limit the risk for both parties.

Entering into a written services agreement

Before placing an order, it is preferable for both parties to sign a contract. This may be more or less detailed depending on the type of services, but it must at minimum include payment terms (amounts, deposits, schedules) and a description of the services (specifications, timeline, validation process, obligation of means or result).

Particular attention should be paid to payment milestones, which are frequently a source of dispute. Is a deposit due on order or during performance? When is the balance payable?

The contract may consist of a quotation and terms and conditions, or a bespoke agreement accompanied by a commercial proposal. A simple oral agreement or email exchange is rarely sufficient to properly frame the engagement. For a more comprehensive guide, see the article on essential clauses in a software development contract. If the provider works on a time-and-materials basis, see the article on freelance T&M contracts.

Retaining evidence of exchanges during performance

It is often tempting to dispense with written exchanges to save time. However, this creates significant legal risk. Without written records, the parties have no evidence of what was agreed or performed.

It is therefore advisable to document the most important exchanges in writing. If changes to the contract are involved, a formal amendment may be necessary. I recommend taking all necessary precautions to demonstrate proper performance of your obligations. For an overview, see the SaaS contracting guide.

Conclusion

A written contract and documented exchanges protect both parties in the event of a dispute. If you need to structure your services agreements, book a call.

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