How to Avoid Contract Disputes with Your Customers

Better Business Bureau

How to Avoid Contract Disputes with Your Customers
BBB has advice to help make the details of your work clear
Contract disputes are one of the most common types of complaints received by BBB. Often, consumers believe a business has not fulfilled its end of the bargain or they are unclear about a section of the contract. Because many contracts can be worded in a way that may be confusing, BBB recommends business owners make sure all terms and conditions in their contracts are easily understood.
Take a look at the way your contracts are written. BBB provides these tips to help keep your customers and your business on the same page.
1. Keep the language simple
Legal jargon can confuse many consumers. Use short sentences, small paragraphs and clearly labeled headings that highlight what is in each section of the contract.
2. List every detail
Include every task that is to be performed, no matter how long it will take to be completed. This allows your customers to know step-by-step what is being done, how it is being done and what materials are being used to get it done. It may be wise to leave space in the contract for items that are negotiable with your customers, or items that can be customized. This ensures anything that is verbally agreed upon will also be in writing.
3. Be specific about the timeframe
Your customers need to know when to expect your work will be completed. Some projects can be time consuming, but putting an expected timeframe for each phase of the job in the contract can help keep you and your customers on the same page throughout the process. Be sure to communicate with your customers should anything fall behind schedule. If the completion date is delayed, make sure it is communicated to your customers in writing.
4. Itemize all costs involved
Include the specific materials used to complete the job, the labor costs, taxes and any discounts you may have offered. Make sure to set a timeframe for when payment is due if the customer can pay in installments. List the types of payment you will take, whether it is check, credit or debit card. Consider using an escrow company for larger jobs.
5. Include any warranties or guarantees
Your business should stand behind its work, so make sure to include information about warranties, as this is a common consumer complaint. Specify what is covered under warranty, such as materials and/or labor. Make sure your customers know if they should contact you or the manufacturer for repairs or replacement parts.
For more tips you can use, visit:centraltx.bbb.org/Business-Resources


How to Avoid Contract Disputes with Your Customers Better Business Bureau How to Avoid Contract Disputes with Your Customers BBB has advice to help make the details of your work clear Contract disputes are one of the most common types of complaints received by BBB. Often, consumers believe a business has not fulfilled its end of the bargain or they are unclear about a section of the contract. Because many contracts can be worded in a way that may be confusing, BBB recommends business owners make sure all terms and conditions in their contracts are easily understood. Take a look at the way your contracts are written. BBB provides these tips to help keep your customers and your business on the same page. 1. Keep the language simple Legal jargon can confuse many consumers. Use short sentences, small paragraphs and clearly labeled headings that highlight what is in each section of the contract. 2. List every detail Include every task that is to be performed, no matter how long it will take to be completed. This allows your customers to know step-by-step what is being done, how it is being done and what materials are being used to get it done. It may be wise to leave space in the contract for items that are negotiable with your customers, or items that can be customized. This ensures anything that is verbally agreed upon will also be in writing. 3. Be specific about the timeframe Your customers need to know when to expect your work will be completed. Some projects can be time consuming, but putting an expected timeframe for each phase of the job in the contract can help keep you and your customers on the same page throughout the process. Be sure to communicate with your customers should anything fall behind schedule. If the completion date is delayed, make sure it is communicated to your customers in writing. 4. Itemize all costs involved Include the specific materials used to complete the job, the labor costs, taxes and any discounts you may have offered. Make sure to set a timeframe for when payment is due if the customer can pay in installments. List the types of payment you will take, whether it is check, credit or debit card. Consider using an escrow company for larger jobs. 5. Include any warranties or guarantees Your business should stand behind its work, so make sure to include information about warranties, as this is a common consumer complaint. Specify what is covered under warranty, such as materials and/or labor. Make sure your customers know if they should contact you or the manufacturer for repairs or replacement parts. For more tips you can use, visit:centraltx.bbb.org/Business-Resources
Alice TX Chamber News - June 2012