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Condo | HOA Lawyers

Tips for Negotiating a Contract By: Beau Chinn Esq.

Before entering into a contract, an association has the opportunity to negotiate terms that provide more protection for the community. One critical aspect of contract negotiation is defining the scope of work. It is essential that all parties involved understand what the project entails and how it will be completed. This helps manage expectations and prevent misunderstandings that could lead to disputes. The contract should clearly define the intended work, the materials to be used, and the quality standards that must be met. When all of these aspects are clearly outlined in a contract, the parties will be better protected should legal disputes over services arise.

Another important aspect of a contract negotiation is the schedule. While it is common for schedules to change during a project, it is important to have a clear understanding of the proposed start and completion dates. The contract should address what will happen if work is not completed on time, and how delays caused by factors outside of the parties’ control, such as weather or unforeseen events, will be addressed. The contract should similarly specify who will be responsible for any unforeseen costs and expenses that may arise during the project. Defining a schedule and addressing potential delays enables parties to work together more effectively, ensuring the project will be completed on time and within budget.

Dispute resolution is an additional factor that contributes to a successful contract. While disputes cannot be entirely prevented, the contract should include a clear framework for resolving them should they occur. This may involve provisions for mediation or arbitration, as well as specifying which party will be responsible for covering the upfront costs of these processes. By addressing dispute resolution in the contract, the parties can avoid costly litigation and work together to resolve any potential disputes in a timely and effective manner.

While each of these elements shape an effective contract, there are a few general principles that should be used to guide the negotiations of any contract. First, it is important to approach the negotiation process with a collaborative mindset. The goal should be to create a contract that works for all parties involved, rather than benefiting one party at the expense of the others. This may necessitate compromise and creative problem-solving, but it can lead to a more successful project and a stronger working relationship between the parties.

Second, it is beneficial to work with legal counsel throughout the negotiation process. Contracts can be complex and may involve a variety of legal issues, so it is important to have a legal expert on hand to guide the negotiation process and ensure all legal requirements are met. This can help prevent disputes and ensure that the project proceeds smoothly from start to finish.

Ultimately, negotiating a contract requires careful attention to detail. By defining the scope of work, addressing the schedule and potential delays, and establishing a clear framework for dispute resolution, parties can minimize risks and ensure a successful project. With the assistance of legal counsel and a focus on collaboration, associations can negotiate contracts that work for everyone involved while protecting their community from harmful disputes and litigation.

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