Introduction

When you’re setting up a service agreement, it’s crucial not to leave the details of what’s being delivered to chance. Clearly defining deliverables is essential for ensuring that everyone involved in the project knows exactly what’s expected. This isn’t just about avoiding misunderstandings; it’s about making sure the project runs smoothly and meets the agreed objectives.

Read: NDAs 101: Why defining confidential information can make or break a deal

Clarity and expectations

Defining deliverables right from the start ensures that both parties have a clear understanding of what’s to be delivered. Think of it as making sure everyone at the table is speaking the same language. Without clear definitions, misunderstandings can easily arise, leading to confusion about the scope of the project. By laying out specific deliverables, you ensure that both sides are aligned on what the final outcome should look like.

When deliverables are not clearly defined, there’s also a greater risk of scope creep—where additional tasks or responsibilities are added without proper agreement. This can lead to delays, increased costs, and frustration for both parties. Nobody likes surprise extras, especially when they come with a hefty price tag.

Managing timelines and deadlines

Clear deliverables are key to setting realistic timelines and deadlines. When everyone knows what needs to be delivered, it’s easier to establish a timeline that works for both parties. This helps to keep the project on track and ensures that each phase is completed on time.

Without well-defined deliverables, deadlines can become vague, leading to potential delays and a lack of accountability. A clear agreement on what’s expected helps maintain momentum and keeps the project moving forward. It’s like having a road map—no one likes wandering around aimlessly, especially when there’s work to be done.

Read: Why governing law clauses can make or break your contract

Protecting your business interests

From a legal perspective, having defined deliverables in your service agreement is vital. If any disputes arise regarding the quality or completeness of the work delivered, the contract serves as a clear reference point. This can be invaluable in resolving disagreements and ensuring that your business interests are protected.

It’s always better to have everything spelled out, rather than relying on “he said, she said” arguments later on. Plus, there’s a certain satisfaction in being able to pull out the contract and say, “Actually, this is what we agreed on.”

Avoiding payment disputes

Defining deliverables also plays a critical role in preventing payment disputes. If the deliverables are vague or open to interpretation, disagreements can arise over whether the work has been completed as agreed. This can delay payments and strain the business relationship.

By clearly specifying what needs to be delivered and when payments are due, you can avoid these issues. This ensures that payments are made promptly and that both parties are satisfied with the transaction. No one enjoys chasing payments, and a clear contract can save everyone the headache.

Enhancing communication

Well-defined deliverables improve communication throughout the project. When everyone knows what the end goal is, discussions about progress, challenges, and adjustments become more straightforward. This leads to a more collaborative working relationship and helps to address any issues before they escalate.

For instance, if a project involves multiple stages, having clearly defined deliverables for each stage allows for effective check-ins and progress assessments. This helps keep the project on track and ensures that any necessary changes are made in a timely manner.

Read: The hidden dangers of auto-renewal clauses in contracts

How Cobrief can help with contract review

Reading your business contracts can feel overwhelming as an owner-manager of a small to medium-sized business. That’s where Cobrief comes in. Cobrief helps business owners and operators review their business-to-business contracts for legal risks.

Upload your contract to Cobrief's AI contract review software, click review and you’ll get a list of all the risks, in plain English. This helps you decide whether to sign, negotiate or reject the terms of your contract, or hire a lawyer. Think of it as a heat map for your contracts.

Get started here.

Conclusion

Clearly defining deliverables in your service agreements is essential for a successful project. It helps to set clear expectations, manage timelines, protect your business interests, and prevent disputes. By ensuring that everyone knows what is expected from the outset, you can avoid many of the common pitfalls that can arise during a project. It’s a small step that can save you a lot of headaches and keep your business running smoothly.