On a benefit of setting up a contract

Wade once made a short comment about contractual arrangement of KPP H&S upgrade project. He wondered whether Timberlands signed contracts with their subbies for the scope of project works. When I said no, he said that it could have been a good advise for them noting their struggle to keep the cost and the programme under control.

Thinking about it made me realise that a contract is more than just a formality can give clients a tangible benefits in a form of guarantees.

Setting up a contract is a way to assure time, cost and quality. While it might appear unnecessary, contract can include a requirement for a programme, performance requirements for a final product as well as various penalties.

While clients with long existing relationships with their contractors might see contracts as unnecessary hurdle, for any projects where they need their team to perform "above average", they are better off with a contract.

Further processing

Worth discussing with Wade if that can be seen as a sign of mistrust and how likely it will damage the relationship.

• Ask Wade how would he manage relationship with subbies who never needed to sign any contracts with their clients, if, all of a sudden, they were to receive such a request? Also worth mentioning low contractual literacy among this type of contractors.