This week, the Office of the Small Business Commissioner (OSBC) released a new Guide to Creating a Contract—a free, practical resource designed to help SMEs draft clear, simple, and fair contracts with their suppliers. The guide supports businesses applying to the Fair Payment Code, but it’s also a valuable tool for any small business aiming to avoid payment disputes.
Many of the payment disputes the OSBC get are because suppliers and customers can’t recall what was agreed. A written contract is an essential business tool, but it must be completely comprehensible to, and agreed by, everyone to be effective. That process builds trust, gives everyone a document to refer to, and helps avoid costly, time-consuming disagreements.
While OSBC can’t offer a contract template, the guide—created in partnership with the World Commerce and Contracting Association and its charitable Foundation—explains what to include and why it matters.
Creating a good contract requires time, taking each other’s requirements into account and applying give and take. If that doesn’t happen the working relationship gets off to a poor start and may eventually break down. The OSBC hopes you’ll find this guide helpful to those businesses you work with to see improvements in their working relationships and payment processes in particular.
Explore the guide here: smallbusinesscommissioner.gov.uk/our-contract-guidance
Photo by Cytonn Photography on Unsplash
