A Good Project Agreement Is Good Project Risk Management
Whether your business is focused on systems integration or custom computer/software programming,
having a signed project agreement before you begin an engagement will reduce or eliminate potential
complications that could arise during a project. Most consulting contracts clearly spell out:
Each party’s duties
Compensation
Terms
Expenses
Written reports
Confidentiality
Termination rules
Solid project agreements or contracts are a critical first step in project management, as well as an
important element in a project risk management plan to protect your business. Defining all project
elements up-front and in writing could help prevent legal trouble later, keeping you from spending
thousands of dollars in legal costs and countless hours in a courtroom.
A good project contract also helps to ensure that you receive the payment that you and your client have
discussed. Too often, a project is well under way when a client suddenly decides not to pay, tries to
lower the price of your work, or changes the terms. If any of these things happen and your client
relationship is not governed by a contract, you could lose a lot of time and money, and your good
relationship with your client could quickly turn sour.