Before signing a master service agreement, contract or any other work-related agreement, it’s important to read over the details carefully. Here are four main things to check.
The section that states what is required of your invoicing is an important part of your agreement. Examples of invoice requirements include signed delivery receipts, bills of lading, field tickets and time sheets. Your customer may require certain backup which if not provided, could hold up payment.
Your agreements will usually include a section that details the insurance coverages required for your company to start and continue work with your customer. If you’re unsure if you have certain limits or endorsements on your policies, it’s best to check with your insurance agent. It’s important that your company is adequately insured in the event there are any potential claims.
Many agreements will require you to obtain prior approval from your customer before hiring subcontractors. They may also require your subcontractors to maintain the same levels of insurance that is required by your company as stated in your agreement. It’s also important that your company has a comprehensive subcontractor agreement that covers any potential areas of dispute with your hired subcontractors.
If the work that you’re doing requires lien wavers, this is often noted. Lien waivers are a form of protection that is signed to confirm any contractors, subcontractors, materials or other parties have received payment and waive their right to any future lien. Failing to sign lien waivers can lead to problems down the line if there are any disputes on payments.