Why is contract management so important?
Agreements serve as the cornerstone of your company. Your company uses contracts with everyone from outside suppliers to business associates and staff. It is believed that between sixty percent and eighty percent of all corporate functions are governed by contracts and agreements. In this way, you and your internal teams will never forget who agreed to what and when. Without knowing what’s in your contracts and who’s responsible for what, you can’t possibly know if you’re living up to your obligations or not. Bad preparation, confusion, missed deadlines, and extra expenses can all arise from a lack of information. Furthermore, it may cause permanent damage to the worth of a contract.
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Contract to Pay for Street Improvement
Summary
First Money In. Most subcontractors will ask for a good faith deposit before beginning work. This is especially true when beginning a relationship with a new firm. Deposits are typically between 25 and 50 percent of the job’s total cost. There is no predetermined floor for this, therefore it’s open to discussion between the two parties. Once each party has established a history of successful transactions, the requirement for the initial deposit may be waived.